Uragold receives trial mining permit, to raise $351,000

2013-02-07 10:40 ET - News Release


Mr. Bernard Tourillon reports


The MDDEP (Ministere du Developpement durable de l'environnement et des parcs) has issued Uragold Bay Resources Inc. the required certificate of authorization (CA) allowing the start of trial mining activities on the Rang Chaussegros of the Beauce placer gold project.

The CA holds Uragold to adhere to agreed environmental control standards in regard to water quality controls, sedimentation pools, overburden deposits, derivation canals and restoration plans.

With this CA, Uragold can now excavate a first 209,000 cubic metres of overburden and trial mine up to 50,000 cubic metres of auriferous basal till and saprolite. Trial mining will allow Uragold to extract gold while bulk sampling the historical placer deposit, validate planned mining methods and increase the concession's potential. As per standard operational procedures, amended CA applications will be submitted on a continuing basis to further expand the size of the mining project.

Patrick Levasseur, president and chief operating officer of Uragold, stated, "We are very proud that after 12 months of hard work obtaining the necessary permits, we can now focus our energy towards extracting gold and generating cash flow."

Non-brokered private placement

Uragold announces its intention to complete a non-brokered private placement of up to 5.85 million units at six cents per unit for gross proceeds of up to $351,000. Each unit comprising one common share and one-half common share purchase warrant of the company. Each warrant will entitle the holder thereof to purchase one common share of the capital stock of the company at an exercise price of 10 cents during a period of 24 months from the date of closing of the placement. Each share issued pursuant to the placement will have a mandatory four-month holding period from the date of closing of the placement. The placement is subject to standard regulatory approvals.

It is currently anticipated that certain insiders of the company will be participating for greater than 25 per cent of the private placement. The net proceeds from the private placement will be used primarily for the Beauce gold project, exploration and mining engineering activities plus general working capital.

About the Beauce placer gold project

The Beauce placer gold property is located in the municipality of Saint-Simon-les-Mines in the Beauce region of Southern Quebec. From 1960 to 1962, the Beauce Placer Mining Company, using a dragline and a floating Yuba dredge, mined 56,000 ounces of placer gold from an area representing less than 20 per cent of the placer channel of the Rang Chaussegros. Studies of the placer gold suggest a close proximity to a bedrock source. The project is in its final planning stage for the start of mining activities