Gold Bullion Development Enters Assignment Agreement to Sell Beaver and Violet Properties to Takara Resources Inc.
2875 Ave Granada Rouyn Noranda, Québec J9Y 1J1 Tel: 819-797-4144 / Fax: 819-762-2306
GOLD BULLION DEVELOPMENT ENTERS ASSIGNMENT AGREEMENT TO SELL BEAVER AND VIOLET PROPERTIES TO TAKARA RESOURCES INC.
October 16, 2015 – Gold Bullion Development Corp. (TSX: V: GBB) (OTCPINK: GBBFF) (the “Company” or “Gold Bullion”) announces it has entered into an assignment agreement dated October 8, 2015 (the “Assignment Agreement”) with Takara Resources Inc. (TSX.V: TKK) (“Takara”), granting Takara the right to acquire a 100% interest in the Beaver and Violet cobalt and silver properties located in the township of Coleman, in northeastern Ontario. Pursuant to the Assignment Agreement, Takara agrees to pay to Gold Bullion an aggregate of $75,000, consisting of $15,000 payable within ten days upon execution of the Assignment Agreement plus four equal installments of $15,000 on the first, second, third and fourth anniversary dates of the date of the Assignment Agreement.
Principal Transaction Terms Pursuant to the terms of the Assignment Agreement, Gold Bullion agrees to assign and transfer to Takara, and Takara has agreed to accept, all of Gold Bullion’s rights, obligations and liabilities under the Option Agreement dated May 10, 2011 (the “Option Agreement”), as amended January 31, 2012.
Gold Bullion holds a seven year option with Jubilee Gold Exploration Ltd. (“Jubilee”) to acquire a 100% interest to the Beaver and Violet properties located in the Coleman Township, in northeastern Ontario. The properties are subject to a 3% NSR royalty, which Gold Bullion has the right to purchase each 1% for $1.5 million. On January 31, 2012, Gold Bullion entered into a consent to assignment and amendment of the Option Agreement with Jubilee pursuant to which Jubilee consented to the assignment by Grupo Moje Limited (“Grupo”), which is owned by an officer and director of Gold Bullion, to Gold Bullion of all of the rights, obligations and liabilities of Grupo under the Option Agreement, to the complete exoneration of Grupo. To acquire ownership of both properties, Gold Bullion paid $10,000 to Jubilee and had to incur an aggregate of $100,000 in exploration expenditures. The exploration expenditure requirement has been met.
Gold Bullion is also required to make annual payments to Jubilee for a period of five years, or until the properties are in commercial production, whichever is earlier, in an aggregate amount of $60,000 for prepayment of the 3% net smelter return royalty held by Jubilee, as follows: $10,000 in each year on or before July 1, 2012, 2013 and 2014, increasing to $15,000 on each of July 1, 2015 and July 1, 2016. Gold Bullion has retained the right to purchase the 3% NSR royalty by paying $1.5 million to Jubilee for each percentage point of the NSR royalty.
Frank J. Basa, a Director, President and Chief Executive Officer of Gold Bullion, Jacques F. Monette, a Director of Gold Bullion, and Thomas P. Devlin, Chief Financial Officer of Gold Bullion, also serve as directors and/or officers of Takara. Frank J. Basa and Jacques F. Monette are on the Board of Directors of Takara while Frank J. Basa serves as President and Chief Executive Officer and Thomas P. Devlin as Chief Financial Officer. As such, the assignment of the properties under the terms of the Assignment Agreement is a “related party transaction” for the purposes of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company is relying on an exemption from the minority approval and formal valuation requirements of MI 61-101 due to the fact that the value of the transaction does not represent greater than 25% of the Company’s market capitalization. The independent directors of the Company have approved the Assignment Agreement and Frank J. Basa and Jacques F. Monette have abstained from voting on the approval of the Assignment Agreement. Other than Frank J. Basa and Jacques F. Monette, no director of the Company abstained from voting on the Assignment Agreement.
No finder’s fees are payable on the transaction. Closing of the transaction is subject to approval of the TSX Venture Exchange.
Qualified Person Technical information in this news release has been reviewed and approved by Claude Duplessis, Eng. PEO, a consulting engineer with GoldMinds Geoservices Inc., from Quebec City, Quebec, Canada, an independent Qualified Person as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects. About Gold Bullion Development Corp.
Gold Bullion Development Corp. is a TSX Venture-listed junior natural resource company engaged in the exploration and development of its 100% owned Granada Gold Property located on the prolific Cadillac Trend near Rouyn-Noranda, Québec. Initial gold mining operations will be focussed on high grade near surface material identified in the 2014 PFS. Prepared rock is to be transported to Iamgold’s nearby facility for processing with project economics forecasting all in cash costs at US $797 per ounce. The Company has been systematically advancing the Granada property since acquiring the previously producing gold mine in 2006. The latest resource update at a 1 g/t Au range base case is 833,477 ounces gold Measured at 0.90 g/t Au in 30.4 M tonnes, 753,811 ounces gold Indicated at 0.96 g/t Au in 26.5 M tonnes and 1.6 million ounces Inferred at 0.99 g/t Au in 51.5 M tonnes using a cut-off grade of 0.30 g/t. Additional information on the Company is available by visiting the website at www.GoldBullionDevelopmentCorp.com and on SEDAR.com.
“Frank J. Basa”
Frank J. Basa P. Eng.
President and Chief Executive Officer For further information contact:
Frank J. Basa, P. Eng., President and CEO at 1-819-797-4144 Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.