ENP Newswire - 05 September 2014
Release date- 04092014 - ST. PETER PORT, GUERNSEY - Avnel Gold Mining Limited (TSX: AVK) is pleased to announce that it has appointed Mr. Jeremy Link as Vice President, Corporate Development.
The Company is also announcing that Mr. Link will make a C$300,000 investment in the Company via a private placement of units of Avnel Gold.
'I am pleased to welcome Jeremy to Avnel Gold's executive team. Jeremy's technical background, business relationships and capital markets experience increases the depth of our strong team. I look forward to working closely with him to refine our long term strategy and communicate the merits of the Kalana Gold Project to the investment community and potential strategic partners,' stated Howard Miller, Avnel Gold's CEO and Chairman.
Mr. Link is a Professional Engineer with more than 10 years experience in the mining and financial industries. He has held roles in exploration, mining, equity research, investment banking, asset management, and been a member of the management team of several gold mining companies. Mr. Link has a Bachelor of Geological Engineering (B.E.) from the University of Saskatchewan, a Master of Civil Engineering (M.Eng.) from the Schulich School of Engineering and is registered as a practicing Professional Engineer (P.Eng.).
Mr. Link will make a C$300,000 investment in Avnel Gold via the Private Placement. Mr. Link is subscribing for 2,000,000 Units consisting at C$0.15 per Unit. Each Unit will consist of one ordinary share in the capital of the Company and one non-transferable ordinary share purchase warrant (a 'Warrant').
Each Warrant will entitle Mr. Link to purchase one ordinary share of Avnel Gold at a price of C$0.25 at any time for a period of two years from the date of issue of the Warrants. Avnel Gold intends to use these proceeds for general corporate purposes. The terms and conditions are the result of arm's length negotiations between the Company and Mr. Link. Closing of the Private Placement will be subject to customary conditions, including the approval of the Toronto Stock Exchange.
ABOUT AVNEL GOLD
Avnel Gold is a TSX-listed gold mining, exploration and development company with operations in southwestern Mali in West Africa. The Company's focus is to develop its 80%-owned Kalana Main Project from a small underground mine into a low-cost, open-pit mining operation. The Company is also advancing several nearby satellite deposits on the 387 km2 30-year Kalana Exploitation Permit.
In March 2014, the Company reported the results of a PEA prepared by Snowden that outlined a 14- year open-pit mine life recovering 1.46 million ounces. Utilizing a gold price of $1,110 per ounce and a 10% discount rate, the PEA reported a net present value of $194 million after-tax and imputed interest, and an internal rate of return of 53% for the project. The Company is now advancing the project to Preliminary Feasibility, which is scheduled to be completed near the end of 2014.
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Preliminary Economic Assessment
The Kalana Main Preliminary Economic Assessment ('PEA') is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves; thus, there is no certainty that the economic benefits indicated in the PEA will be realized.
The PEA is subject to a number of assumptions, including, among others that an Environmental and Social Impact Assessment ('ESIA') will be completed within the required timeline, all required permits will be obtained in a timely manner, the company will continue to have the support of local community, a constant regulatory environment and no material increase occurs to the estimated costs.
The Kalana Main PEA is based upon an 8.54 million tonne Indicated Mineral Resource grading 4.53 g/t Au containing 1.25 million ounces and a 2.09 million tonne Inferred Mineral Resource grading 3.76 g/t Au containing 0.25 million ounces utilizing a cut-off grade of 0.9 g/t Au. The PEA also includes 0.66 million tonnes of tailings grading 1.80 g/t Au that are classified as an Indicated Mineral Resource. Investors are cautioned not to assume that all or any portion of these mineral resources will ever be converted into proven and probable reserves.
This news release includes certain 'forward-looking statements'. All statements, other than statements of historical fact, included in this release, including the future plans and objectives of Avnel Gold, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ materially from Avnel Gold's expectations include, among others, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of gold and silver, as well as those factors discussed in the section entitled 'Risk Factors' in Avnel Gold's Annual Information Form, which is available on SEDAR (www.sedar.com).
Although Avnel Gold has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.