Brigadier Gold Limited Signs a Letter With a Shareholder of Mexican
Copper Mines (Guernsey) Ltd. to Acquire Additional Cuatro Ciénegas
District Properties in Mexico
TORONTO, ONTARIO--(Marketwired - Feb 19, 2014) - Mr. Grant Hall
reports:
Brigadier Gold Ltd. ("Brigadier") (TSX-VENTURE:BRG) has signed a
letter with a shareholder of Mexican Copper Mines (Guernsey) Ltd.
("Mexican") that sets out the terms and conditions with which
Brigadier will acquire 70% of the outstanding shares of Mexican
which owns through its subsidiary Molycomex S. A. de C. V. an
undivided right, title and interest (the "Acquisition") in 5
additional Cuatro Ciénegas District mineral properties in Mexico
(the "Assets") through the subsidiary Molycomex S.A. de C.V.
Brigadier will issue 20,000,000 consolidated treasury shares
(following a consolidation of its outstanding shares on a 10 for
one basis, to be presented to a special shareholder meeting),
subject to the approval of the TSX Venture Exchange. In addition,
Brigadier will issue warrants with the following terms:
(a) If Brigadier obtains, within three (3) years from completing
the Acquisition, a report prepared in conformity with the
requirements of National Instrument 43-101 ("NI 43-101") disclosing
that the Assets contain 200,000 tonnes of ore, with a grade of not
less than 1.5% copper equivalent, then the warrant holder may
exercise the warrant and acquire that number of shares which, when
multiplied by the twenty (20) day prior weighted average market
price of Brigadier's consolidated shares, equals a value of
US$1,000,000;
(b) If Brigadier obtains, within four (4) years from completing
the Acquisition, a report prepared in conformity with the
requirements of NI 43-101 disclosing that the Assets contain
500,000 tonnes of ore, with a grade of not less than 1.5% copper
equivalent, then the warrant holder may exercise the warrant and
acquire that number of shares which, when multiplied by the twenty
(20) day prior weighted average market price of Brigadier's
consolidated shares, equals a value of US$1,500,000;
In connection with the Acquisition, Mexican Copper Mines
(Guernsey) Ltd. has agreed to amend the terms of a 5 year 12%
US$2,250,000 debenture issued by Molycomex S.A. de C.V. to it, such
that the debenture shall become convertible at a price of $0.25 CAD
per share, at the option of Mexican Copper Mines (Guernsey)
Ltd.
Subject to Exchange approval, Brigadier Gold will pay a finders
fee to an unrelated third party in connection with this transaction
by the issuance of 2 million post consolidated shares in the
Company subject to TSX Venture Exchange approval.
Concurrent with the completion of the Transaction, Brigadier
will complete a private placement of its Consolidated Shares to
raise a minimum of US$2,000,000 and a maximum of US3,000,000 at a
price of $0.25 CAD per Consolidated Share, subject to the consent
of the TSX Venture Exchange.
About the
Assets
The properties are situated in the State of Coahuila, Mexico,
almost adjacent to Brigadier's Granizo and Don Indio Properties,
some 50 km southeast of the town of Cuatro Ciénegas. The Properties
lie along the foot of the Sierra San Marcos y Pinos range and are
composed of 5 concessions, totalling 14,859 ha, namely: the Apache
4, Apache 14, San Antonio, Jabali and Jabali 2 concessions. The
Apache 14, San Antonio, Jabali and Jabali 2 concessions all fall
within the Apache 4 concession. Mexican Copper Mines has a 100%
interest in the Apache 4 concession and a 70% interest in the
Apache 14, San Antonio, Jabali and Jabali 2 concessions. There are
3 additional concessions, which lie within the Apache 4 concession
that are not owned by Mexican Copper Mines, namely the Martha (210
ha) and the two El Ojito claims (43 ha and 83 ha respectively).
On the Mexican Copper Mines' Properties, stratabound
copper-silver mineralization occurs within arenites and arkoses at
the top of the Lower Cretaceous San Marcos Formation, just below a
zone of carbonaceous beds grading into limestones of the Lower
Cretaceous Cupido Formation. The stratabound Cu-Ag mineralization
can be traced in outcrop for some 40 km northwest to southeast and
has an, as yet, undefined down-dip extension to the northeast. The
mineralization occurs in 1.7 m- to 5.69 m-thick, concordant layers
referred to as "mantos". The mantos carry Cu and Ag minerals,
(predominantly supergene chrysocolla, malachite, azurite and
tenorite). Small amounts of primary copper sulphide minerals, such
as chalcocite and argentite, occur within the quartz cement of the
arenites, Exploration during 2012 revealed mantos carrying grades
of 0.2 to 18.0 % copper and 2 to 592 g/t silver.
There are presently five main showings on the Mexican Copper
Mines' Properties, namely: the Buena Suerte, San Antonio, Ojitos,
Emes and Las Juanitas showings. The Buena Suerte and San Antonio
showings are currently the primary exploration targets.
The San Antonio and Buena Suerte showings are part of one
continuous manto, which has a thickness of 1.4 to 4.25 m and has
been traced continuously along strike for 1.2 km. Calculated
weighted sample averages from the San Antonio-Buena Suerte manto
indicate grades of between 0.02 to 4.91% Cu and 1 to 51 g/t Ag.
Localized sample intervals show enrichment in Cu and Ag: a 0.48 m
zone of 4.26% Cu, a 0.75 m zone of 5.77% Cu, a 0.70 m zone of 14.9%
Cu and 91 g/t Ag, a 0.79 m zone of 5.87% Cu, and a 0.85 m zone of
159 g/t Ag. The down-dip extent of this manto remains open for the
San Antonio and Buena Suerte showings.
The Ojitos showing, discovered in 2011, has a mineralized
thickness of 0.5 to 5.69 m, with calculated weighted trench-sample
averages ranging from 0.03 to 3.66% Cu and 1 to 583 g/t Ag.
Locally, mineralized zones show enrichment in Cu and Ag: a 0.80 m
zone of 18.05% Cu, a 1.30 m zone of 9.79% Cu, a 2.49 m zone of
6.93% Cu, a 0.64 m zone of 16.75% Cu and 592 g/t Ag, a 0.66 m zone
of 5.81% Cu and 197 g/t Ag, and a 0.70 m zone of 583 g/t Ag.
Some 1.5 km northwest of Ojitos is the Emes showing, also
discovered in 2011. A grab sample from this manto carried 2.65% Cu
and 48 g/t Ag.
The northernmost showing on the Mexican Copper Mines' Property
is Las Juanitas. This showing is situated stratigraphically deeper
than the above-mentioned showings (within the L. Cretaceous San
Marcos Formation). The manto has a thickness of 0.4 to 2.0 m and
grades 0.01 to 2.83 % Cu and 1 to 63 g/t Ag. Locally, mineralized
zones show enrichment in Cu and Ag, including a 0.5 m zone of 2.83%
Cu and 63 g/t Ag. The down-dip extension, as with the other
showings, is yet to be defined by drilling.
It is postulated that these Cu-Ag bearing mantos were generated
when deep, hot, oilfield basinal brines leached Cu and Ag (plus a
spectrum of other elements including Zn, Pb) from sedimentary and
igneous rocks. During an orogenic phase, these hot, metalliferous
brines migrated towards the surface through the Cretaceous strata.
The fluids then encountered an oxidation/reduction boundary in the
Lower Cretaceous strata and thus Cu and Ag sulphides were
precipitated. Subsequent interaction with oxidizing ground waters
partially broke down the metal sulphides and deposited the
secondary copper and silver minerals.
Sediment-hosted copper deposits are traditionally classified
into two types: the Kupferschiefer type and the redbed type. The
Cu-Ag deposits of the Cuatro Ciénegas area belong to the latter
redbed type. Elsewhere in North America redbed copper deposits,
similar to those around Cuatro Ciénegas, occur at Las Vigas
(Chihuahua, Mexico), Spar Lake (Montana, USA), Rock Creek and
Montanore (Montana, USA), and Creta (Oklahoma, USA). Evidence from
recent exploration reveals characteristics of the Cu-Ag deposits on
the Mexican Copper Mines' Properties which bear many striking
similarities to the deposits of the Copper Belt of Zambia and the
Democratic Republic of the Congo, which have to date produced in
excess of 1 billion tonnes of copper metal from ores with an
average grade of approximately 2.7% Cu, together with significant
quantities of Ag.
These results were obtained by qualified personnel during the
preparation of an NI 43-101 report and can be considered accurate.
This report on the Madero property was written by Dahrouge
Geological Consulting Ltd. and dated December 11, 2013. It is being
filed on www.sedar.com, on Feb 19th, 2014, with this press release.
William R. Gilmour, BSc, PGeo, of Discovery Consultants of Vernon,
BC, and a qualified person as defined by NI 43-101, has supervised
the preparation of the scientific and technical information that
forms the basis for this news release.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
FORWARD-LOOKING STATEMENTS: This news release contains certain
"forward-looking statements." All statements, other than statements
of historic fact, that address activities, events or developments
that Brigadier believes, expects or anticipates will or may occur
in the future are forward-looking statements. Forward-looking
statements are often, but not always, identified by the use of
words such as "seek", "anticipate", "believe", "plan", "estimate",
"expect", and "intend" and statements that an event or result
"may", "will", "can", "should", "could", or "might" occur or be
achieved and other similar expressions. These forward-looking
statements reflect the current expectations or beliefs of Brigadier
based on information currently available to Brigadier.
Forward-looking statements are subject to a number of risks and
uncertainties that may cause the actual results of Brigadier to
differ materially from those discussed in the forward-looking
statements, and even if such actual results are realized or
substantially realized, there can be no assurance that they will
have the expected consequences to, or effects on Brigadier. Factors
that could cause actual results or events to differ materially from
current expectations include, among other things, failure to
successfully complete financings, capital and other costs varying
significantly from estimates, production rates varying from
estimates, changes in world copper and/or gold or other mineral
markets, changes in equity markets, uncertainties relating to the
availability and costs of financing needed in the future, equipment
failure, unexpected geological conditions, imprecision in resource
estimates, success of future development initiatives, competition,
operating performance of facilities, environmental and safety
risks, delays in obtaining or failure to obtain tenure to
properties and/or necessary permits and approvals, and other
development and operating risks. Any forward-looking statement
speaks only as of the date on which it is made and, except as may
be required by applicable securities laws, Brigadier disclaims any
intent or obligation to update any forward-looking statement,
whether as a result of new information, future events or results or
otherwise. Although Brigadier believes that the assumptions
inherent in the forward-looking statements are reasonable,
forward-looking statements are not guarantees of future performance
and accordingly undue reliance should not be put on such statements
due to the inherent uncertainty therein.
Brigadier Gold LimitedMr. Grant HallPresident & CEO+1 (520)
668-4101ghall@brigadiergold.com
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