June 10, 2015 Antioquia Gold Announces Decision to Proceed with Underground Gold Mine at Cisneros Project and Stock Option Grant
June 10, 2015, Calgary, Alberta: Antioquia Gold Inc. ("Antioquia Gold" or the "Company") (TSX-V: AGD; OTCQX: AGDXF) is pleased to announce that it intends to proceed with the development and construction of a 500 tpd underground gold mine at its Cisneros Project near Medellín, Colombia.
The Cisneros Project is located in the central area of the department of Antioquia, Colombia, approximately 55 kilometers northeast of Medellin. The Company has been actively exploring the Cisneros Project since 2007 and has drilled 209 drill holes to date, amounting to 45,400 meters of drilling. After taking into consideration the exploration results to date, the availability of funding, the low starting costs and other factors, the Company has determined that it should proceed with the development and construction of the mine. For more information regarding the Cisneros Project, please refer to the National Instrument 43-101 compliant technical report titled "Cisneros Gold Project, Antioquia Department, Colombia" dated October 14, 2013, a copy of which is available on SEDAR under the Company's profile at www.sedar.com.
Highlights of the project include:
Capital Expenditures -- management of the Company estimates that capital expenditures for the project to be approximately $40 million. It is expected that 50% of such capital expenditures will be funded via a shareholder loan, and 50% via cash flow from operations as the project moves forward;
Project Schedule - set forth below is management's estimate of the time line for the project; however, project schedules are always subject to change:
Civil Works and Infrastructure -- Begin September, 2015; complete December, 2015
Tunnel and Mine Development -- Begin Sept, 2015; complete July, 2016
Environmental & Mining Permit -- December, 2015
Civil Works and Infrastructure -- May, 2016
Tunnel and Mine Development -- July, 2016
Process Plant & Main Infrastructure
Final Basic Engineering and Design -- July, 2015
Construction/Commissioning -- July, 2016
The Company will be providing further details on a monthly basis through SEDAR and through its website, www.antioquiagoldinc.com.
The Company also announces that pursuant to its stock option plan, and subject to regulatory approval, it has granted 10,800,000 options to purchase common shares of the Company to directors, officers and certain key employees of the Corporation. These options expire five years from the date of grant and have an exercise price of $0.10 per share. Vital Energy has determined that exemptions from the various requirements of the TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 are available for the issuance of the options to the director and officer of the Corporation (Formal Valuation - Issuer Not Listed on Specified Markets; Minority Approval - Fair Market Value Not More Than 25% of Market Capitalization).
Mr. Jim Decker, P. Eng., Executive Vice President and Director of Antioquia Gold Inc. and a Qualified Person as defined by National Instrument 43-101, has reviewed the contents of this news release.
This press release contains "forward-looking information" within the meaning of Canadian securities legislation. This information and these statements, referred to herein as "forward-looking statements", are made as of the date of this press release and the Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by law.
Forward-looking statements relate to future events or future performance and reflect current expectations or beliefs regarding future events and include, but are not limited to, statements with respect to: capital expenditures, operating costs, and the anticipated project schedule. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "anticipates", "plans", "projects", "estimates", "assumes", "intends", "strategy", "goals", "objectives", "schedule" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements.
Forward-looking statements are made based upon certain assumptions by the Company and other important factors that, if untrue, could cause the actual results, performances or achievements of Antioquia Gold to be materially different from future results, performances or achievements expressed or implied by such statements. Such statements and information are based on numerous assumptions regarding present and future business prospects and strategies and the environment in which Antioquia Gold will operate in the future, including the price of gold, anticipated costs and Antioquia Gold's ability to achieve its goals, anticipated financial performance, regulatory developments, development plans, exploration, development and mining activities and commitments. Although management considers its assumptions on such matters to be reasonable based on information currently available to it, they may prove to be incorrect. Certain important assumptions by Antioquia Gold in making forward-looking statements include, but are not limited to: (i) required capital investment and estimated workforce requirements; (ii) estimates of net present value and internal rates of return; (iii) receipt of regulatory approvals on acceptable terms within commonly experienced time frames; (iv) anticipated timelines for the commencement of mine production; (v) market prices for gold and the potential impact on the Cisneros Project; and (viii) future exploration plans and objectives. Additional risks are described in Antioquia Gold's most recently filed annual and interim MD&A and other disclosure documents available under the Company's profile at: www.sedar.com.
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. We caution readers not to place undue reliance on these forward-looking statements as a number of important risk factors could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates, assumptions and intentions expressed in such forward-looking statements. These risk factors may be generally stated as the risk that the assumptions and estimates expressed above do not occur, including the assumption in many forward-looking statements that other forward-looking statements will be correct, but specifically include, without limitation:
Years of Production
Antioquia Gold cautions that the foregoing list of factors that may affect future results is not exhaustive, and new, unforeseeable risks may arise from time to time.
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 release.