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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: AugustWest who wrote (5169)	10/7/2002 10:17:41 AM
From: AugustWest	Read Replies (1) \| Respond to of 57110

(PR NEWSWIRE) Bema More than Doubles Gold Production and Reserves by Combinin Bema More than Doubles Gold Production and Reserves by Combining with EAGC, (Owners of Chimera Mines and Minerals) VANCOUVER, Oct. 7 /PRNewswire-FirstCall/ - Bema Gold Corporation ("Bema" or the "Company") and EAGC Ventures Corp. ("EAGC"), owner of Chimera Mines and Minerals ("Chimera"), have entered into a business combination agreement ("the combination") whereby the shareholders of EAGC will receive one share of Bema in exchange for each share of EAGC. This transaction is subject to regulatory approval, EAGC shareholder approval and EAGC completion of the acquisition of Petrex (Proprietary) Ltd ("Petrex"). Petrex owns 100% of the Petrex Mining Camp (herein to be called "Golden Reefs Mines" or "Golden Reefs") that owns certain operating gold mining properties in East Rand South Africa. The Golden Reefs Mines contain 1.6 million ounces of proven and probable gold reserves and 3.3 million ounces of gold resources. Based on an independently audited 10 year mine plan, the mine is projected to produce an average of 185,000 ounces of gold per year with operating cash costs estimated at approximately $185 per ounce. In addition, Chimera management has generated a strategic case that, if successfully implemented, would increase annual production to over 240,000 ounces of gold per year with operating cash costs estimated at $164 per ounce. In order to complete this business combination Bema will issue approximately 50 million shares. This combination with EAGC will increase Bema's projected annual production to approximately 315,000 ounces of gold per year with projected operating cash costs of approximately $135 per ounce. Bema's reserves and resources combined with Golden Reefs' current reserves and resources will be approximately 2.8 million ounces of gold reserves and approximately 11 million ounces of resources. This business combination transforms Bema into a low cost intermediate gold producer, focused on growth with proven leverage to gold and extraordinary liquidity. In order to complete the $67 million acquisition of Petrex, EAGC has arranged a $35 million loan facility and a $5 million working capital facility from Standard Bank London. In addition, EAGC has entered into an agreement with Griffith McBurney & Partners, BMO Nesbitt Burns and Canaccord Capital Corporation (the "Agents") to raise approximately $40 million by the sale of special warrants. Bema has agreed to acquire $10 million of the special warrants, with an option to acquire an additional $10 million. The offering consists of approximately 45 million units at CDN$1.40 per unit with each unit consisting of one common share and one half share purchase warrant. Each whole warrant entitles the holder to acquire one additional common share of EAGC priced at CDN$1.90 for a period of 5 years. On completion of the business combination Bema or a subsidiary company will assume the bank facility. Golden Reefs is located 45km from Johannesburg in the Witwatersrand Basin of South Africa, one of the world's most prolific gold producing regions with historical production of approximately 1.48 billion ounces of gold. The East Rand gold mining camp has been the largest gold producing camp within the Witwatersrand Basin, having produced over 300 million ounces. Management is confident that it can extend the current 10 year mine life by converting resources into reserves and through additional exploration on the 325 square kilometre mine license. On behalf of BEMA GOLD CORPORATION "Clive T. Johnson" Chairman, C.E.O., & President (x)All figures are expressed in US dollars unless otherwise stated The Toronto Stock Exchanges neither approves nor disapproves the information contained in this News Release, Bema Gold Corporation trades on The Toronto and American stock exchanges. Symbol: BGO. The special warrants and any securities which may be issued thereunder have not been registered under the U.S. Securities Act of 1933 as amended and may not be offered or sold in the U.S. or to a U.S. person in the absence of such registration or an exemption therefrom. 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 -0- 10/07/2002 /CONTACT: on Bema Gold and EAGC 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) CO: Bema Gold Corporation ST: British Columbia IN: MNG SU: -30- * end of story *