Mar 5 2014
COASTAL GOLD CORP. (the "Company") has entered into an agreement (the "Agreement") to sell its wholly-owned subsidiary, Castillian Metais Ltda. ("CML"), to Falcon Metais Ltda. ("Falcon Metais"). CML holds a 100% interest in the Mangabal nickel-copper project in Goias State, Brazil (the "Mangabal Project").
In consideration for the shares of CML, Falcon Metais has agreed to assume all liabilities and obligations of CML, including those relating to the Mangabal Project, from and after the date on which the sale closes (the "Closing Date").
Pursuant to the Agreement the Company has also agreed to issue to Amazon Potash Corp. ("APC"), the parent company of Falcon Metais, 3,117,040 common shares of the Company at a deemed price of Cdn$0.05 per share in repayment of R$111,900 that Falcon Metais paid on behalf of the Company to the Departamento Nacional de Produção Mineral ("DNPM") and an additional R$219,700 that Falcon Metais has agreed to pay on behalf of the Company to DNPM in settlement of liabilities relating to the Mangabal Project (the "Shares for Debt Settlement"). On March 3, 2014, the date on which the Company entered into the Agreement, one Brazilian Real was worth 0.47 Canadian Dollars.
Dr. Bill Pearson, President and CEO of the Company, commented: "The sale of the Mangabal Project is consistent with Coastal Gold's stated strategy to sell its non-core assets and focus the Company's resources on the development of the Hope Brook Project."
The completion of the sale of CML and the Shares for Debt Settlement are subject to certain conditions precedent, including acceptance by the TSX Venture Exchange.
The Company also announces that Ms. Colinda Parent has resigned as Vice President, Corporate Development of the Company. The Company thanks Ms. Parent for her contributions and wishes her well in her future endeavors.
ABOUT COASTAL GOLD
Coastal Gold is a Canadian mineral exploration company listed on the TSX Venture Exchange under the symbol "COD". Coastal Gold's flag ship property is the Hope Brook Gold Project located in southwestern Newfoundland, which has 19.9 million tonnes at 1.93 g Au/t for 1,239,000 ounces of indicated mineral resources and 1.3 million tonnes at 3.22 g Au/t for 138,000 ounces of inferred mineral resources. In addition, there are inferred mineral resources in the tailings of 4.9 million tonnes at 0.85 g Au/t and 0.09% copper containing 134,500 ounces of gold and 9.5 million pounds of copper. See the technical report entitled "2013 Mineral Resource Estimate Technical Report, Hope Brook Gold Project, Newfoundland and Labrador, Canada" effective as of December 4, 2013, which is available under the Company's profile on SEDAR at www.sedar.com.
QUALIFIED PERSONS
Dr. Bill Pearson, P.Geo., President & CEO of Coastal Gold and a Qualified Person as defined by NI 43-101, has reviewed and approved the scientific and technical content of this news release.
Source: https://firstmininggold.com/