Re: News Release - Monday, November 19, 2007
Bjorkdal Gold Mine - Exercise of Option to Purchase
Gold-Ore Resources Ltd. (the "Company") is pleased to announce that the
Board of Directors has formally and unanimously voted in favour of
completing the Option to Purchase the Bjorkdal Gold Mine in Sweden. The
acquisition is scheduled to close on December 17th, 2007.
The final payment to Minmet plc will include USD$2.0 million (CDN$1.87
million, Swedish Kronor $12.8 million) cash and 4 million common shares
of the Company. The shares will have a mandatory 4-month hold as per
TSX-Venture policy. In addition, Minmet will retain a sliding scale
0.5% to 1.75% Net Smelter Royalty (NSR) that varies based on gold
prices. The NSR is currently payable at the rate of 1.75% and can be
purchased at any time for US$1.0 million with cash or share equivalent.
In consideration for the payment, the Company will receive 100% of the
issued shares of Bjorkdalsgruvan AB - the Swedish company that owns the
Bjorkdal Mine. The assets of Bjorkdalsgruvan includes a fully
operational 3500 tonne/day gold processing plant with a replacement
value of US$40 million, all associated mineral resources, working
capital of CDN$1.5 million, and 43 square kilometres of prime
"The combination of a producing operation and highly prospective
properties provides Gold-Ore the unique opportunity to immediately
become a gold producing company with excellent growth potential" states
Glen Dickson, Gold-Ore's Chairman. "We now have a core business from
which to expand our activities in Sweden. With our recent acquisition
from Lundin Mining and the Bjorkdal Property we now control 80
continuous square kilometres covering highly prospective gold targets
near the plant".
The Bjorkdal Mine is currently producing gold from surface stockpiles
and from the underground workings. The mine will produce an estimated
20,000 ounces of gold during 2007. A feasibility study that addresses
an underground mining expansion to 1500 tonnes per day is nearing
During the last 20 months Gold-Ore has performed an exhaustive
evaluation of the property by completing 2,000 metres of tunnels,
20,000 metres of diamond drilling (210 holes) and has received 22,000
gold assays. This evaluation has clearly demonstrated that the
mineralization extends northwards from the open pit and is wide open to
For more information please contact Glen Dickson or Bob Wasylyshyn at
(604) 687-8884. Bjorkdal property information is posted on the
Company's web site at www.goldoreresources.com Robert S. Wasylyshyn; P.
Geo. is the Company's Qualified Person for the Bjorkdal Project.
ON BEHALF OF THE BOARD
Glen Dickson, Chairman
Copyright (c) 2007 GOLD ORE RESOURCES LTD. (GOZ) All rights reserved.
For more information visit our website at
http://www.goldoreresources.com/ or send