Kinbauri Gold Corp.: funds released from escrow
OTTAWA, ONTARIO - Kinbauri Gold Corp.announced that Anglo Pacific Group PLC Is currently releasing all the funds in escrow in accordance with its right to purchase all the necessary documents have been registered against Kinbauri respective mining rights in Spain. In May 2008, APG closed an agreement with Kinbauri which he bought a net 2.5% royalty on smelter Kinbauri El Valle / Carles project in Spain by issuing a convertible debt instrument in the principal amount of CDN $ 7500000.
These funds combined with VAT refunds and subsidies because of Kinbauri subsidiaries in Spain, would allow Kinbauri (i) to operate comfortably through, and (ii) obtain the financing required for pre-production development before the end the month of February, 2009. Kinbauri is considering a number of funding options to maximize shareholder value.
Kinbauri is currently ahead with a 2008/early the end of 2009 redefined exploration / development program, which focuses on geotechnical drilling, test mining and other studies related to the completion of (i) a study in early December, 2008 and (ii) a feasibility study in early 2009. It also continues the exploration drilling focused on extending the high quality of San Martin in the area of El Valle, which is open to the southeast.
The N.I. 43-101 technical report (updated resource), which is being completed by Ore Resources Engineering and had been scheduled to be received in mid-month, will not be available before the 27th week of October due to more work than expected was necessary to update the previous technical report.
Kinbauri is a TSXV - Tier 1 Mineral Exploration Company focused on the development of mineral properties, primarily precious metal prospects in northwestern Spain, Nevada and Canada. His immediate goal is to expand and upgrade resources to reserves at the El Valle property in Asturias, Spain to begin operations at the existing mine and complex it in early 2010. It currently has 48752695 shares issued and outstanding.
This press release was prepared by KINBAURI GOLD CORP. TSX Venture Exchange accepts no responsibility for the adequacy or accuracy of this release.
This press release contains certain forward-looking statements, which are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could ensure that the events or results to differ materially from those projected. Kinbauri does not undertake to update forward-looking statements if circumstances or estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.