Bema Gold Corporation/Consolidated Puma Minerals Corp. - Joint News Release Acquisition of Russian Platinum Palladium Project
VANCOUVER, May 17, 2002 /PRNewswire-FirstCall via COMTEX/ -- Bema Gold Corporation ("Bema" or "the Company") is pleased to announce that the Company has entered into an agreement to earn an 80% interest in the East Pansky Platinum Palladium property located in the Kola peninsula of Western Russia. Bema has agreed to assign all of its rights and interest in the East Pansky exploration licence to Consolidated Puma Minerals Corp. ("Puma"), an affiliated company. Bema will continue to hold a majority ownership in Puma.
The Platinum group mineralization on the East Pansky Property occurs within sulphide bearing horizons (reefs) within a layered intrusion. The best zone identified, by the Russian operators, on the East Pansky Property is the Churazorski zone located at the far eastern end of the property. This zone, which is open along strike and at depth, has been traced along strike for 800 meters in outcrop and for 600 metres in 3 drill holes totalling approximately 360 metres. An ongoing ground magnetometer survey indicates the stratigraphy in the Churazorski zone is continuous for at least 6 kilometers and is open to the east and west. Significant intersections of platinum group elements (PGE) and gold (Au) in these 3 previously drilled holes on the Churazorski zone are:
Hole No. Interval PGE+Au Width
---------------------------------------------
C-253 22.2-26.45 11.4 g/t 4.25m
C-256 66.3-68.0 7.48 g/t 1.7m
C-259 101-101.5 13.6 g/t 0.5m
An additional 7 holes totaling 845 metres were drilled in the same area away from the mineralization to define stratigraphy. Float and outcrop samples from the Churazorski area contained significant PGE mineralization with grades up to 41.9 grams per tonne PGE + Au over .7 metres
The East Pansky Property covers the eastern 31 km of the 80 km long by 3- 6 km wide Lower Proterozoic Federo-Pansky ultramafic to mafic layered intrusion. Mineralization on the East Pansky property occurs in 2 horizons. The northern reef, which includes the Churazorski zone, has been partially defined by mapping and limited drilling in 4 zones over 16 kilometers. The zones are largely unexplored and up to 8 kilometres of strike length between the zones is untested. The southern reef has been traced along strike for 4 kilometers in 2 zones. The infrastructure at East Pansky is excellent. The Monchegorsk nickel-copper smelter is located 120 kilometers west of the property and a power line and railroad are located 40 kilometers west of the property.
Bema's technical team believe that this property has the potential to host a reef style platinum-palladium deposit similar to those found in South Africa, Finland and Montana. A 6000 metre diamond drill project is currently underway to evaluate the mineralization at the Churazorski zone.
Bema has reached an agreement with Puma to assign all of the Company's rights and interest in the East Pansky Property on the following basis:
Bema will be issued 13 million Puma shares priced at CDN$0.25 per share as settlement of CDN$3.25 million of existing debt owed to Bema. Bema will also be issued approximately 4 million Puma shares priced at CDN$0.25 in reimbursement for current and anticipated Bema expenditures, up to closing, related to the acquisition and a preliminary drill program initiated by Bema.
As a condition of the acquisition, Puma is required to raise a minimum of CDN$2.0 million to fund the 2002 exploration program at East Pansky. Puma has reached an agreement for a non-brokered private placement of up to 6 million shares at CDN$0.40 per share for gross proceeds of CDN$2.4 million. Puma will file an Annual Information Form prior to closing so that a four-month hold period will apply to the placement shares. Bema currently owns approximately 33% of Puma and will, upon completion of this transaction and closing of the financing, own approximately 63% and retain the right to participate pro-rate in future financings. A finder's fee to an arms length party will be paid in relation to this transaction.
Puma can earn an 80% interest in the East Pansky Property by paying to the property vendors:
i) 2 million shares of Puma at CDN$0.25 per share upon closing.
ii) US$500,000 in cash or shares within 30 days of completing US$2.0
million in exploration expenditures or 2 years from date of
execution of agreements (whichever is earliest).
iii) US$500,000 per year in cash or shares on the anniversary date of
the payment in paragraph ii), until a Feasibility Study is
completed.
iv) Upon a Feasibility Study being completed pay, in cash or shares,
an amount equal to US$3 per/oz of recoverable PGE as per the
Feasibility Study provided such amount shall not exceed US$9.0
million and shall not be less than US$3.0 million. Payments in
(iii) to be deducted.
v) Until commencement of commercial production (CCP) pay US$500,000
in cash or shares each year on the payment anniversary date in
(iv) until CCP occurs.
vi) Within 6 months of CCP pay US$5.0 million in cash or shares minus
amounts paid in (v) or, at Puma's election, pay US$3.0 million
plus an amount equal to a 2% net smelter returns royalty.
Puma is setting one million stock options at CDN$0.25 for directors, officers and employees.
This transaction, proposed private placement and proposed stock options are subject to regulatory and Puma shareholder approval. When completed, Puma is expected to have approximately 25.4 million shares outstanding on a fully diluted basis.
On behalf of BEMA GOLD CORPORATION
"Clive T. Johnson"
Chairman, C.E.O., & President
On behalf of PUMA MINERALS CORP.
"Roger Richer"
President & Director
For further information on Bema Gold, Puma or the East Pansky Property please contact Investor Relations at (604) 681-8371 or toll-free 1-800-316- 8855 or alternatively contact our web-site at www.bema.com
The Toronto Stock Exchanges and the TSX Venture Exchange neither approves nor disapproves the information contained in this News Release, Bema Gold Corporation trades on The Toronto and American stock exchanges. Symbol: BGO. Consolidated Puma Minerals Corp. trades on the TSX Venture Exchange. Symbol: CPW.
Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.
SOURCE Bema Gold Corporation
CONTACT: For further information on Bema Gold, Puma or the East Pansky
Property please contact Investor Relations at 604-681-8371 or toll-free
1-800-316-8855 or alternatively contact our web-site at www.bema.com;
To request a free copy of this organization's annual report, please go to
newswire.ca and click on reports@cnw.
(BGO. BGO CPW.)
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