Kinbauri Gold Corp.: Funds Released From Escrow
Kinbauri Gold Corp. announces that Anglo Pacific Group PLC is now releasing all escrowed funds pursuant to its royalty purchase, as all required documents have now been registered against Kinbauri’s respective mining titles in Spain. In May of 2008, APG closed an agreement with Kinbauri whereby it purchased a 2.5% net smelter royalty on Kinbauri’s El Valle/Carles project in Spain through the issuance of a convertible debt instrument in the principal amount of $7,500,000 CDN (for more details see press release of May 14th, 2008).
These funds in combination with VAT refunds and subsidies due to Kinbauri’s subsidiaries in Spain should allow Kinbauri (i) to comfortably operate through to; and (ii) obtain financing required for pre-production development before the end of February, 2009. Kinbauri is examining a number of financing alternatives to maximize shareholder value.
Kinbauri is currently carrying forward with a late 2008/early 2009 redefined exploration/development program, which concentrates on geotechnical drilling, test mining, and other studies related to completion of (i) a scoping study in early December, 2008 and (ii) a feasibility study in early 2009. It is also continuing exploration drilling that is focused on extending the high grade San Martin Zone at El Valle, which is open to the southeast.
The N.I. 43-101 technical report (resource up-date),which is being completed by Ore Resources Engineering and had been expected to be received by mid-month, will not be available until the week of October 27th due to more work than anticipated being required to up-date the previous technical report.
Kinbauri is a TSXV – Tier 1 Mineral Exploration Company focused on the development of mineral properties, primarily precious metal prospects in northwestern Spain, Nevada and Canada. Its immediate focus is to expand and upgrade resources to reserves at the El Valle property in Asturias, Spain in order to start operations at the mine and existing mill complex there in early 2010. It currently has 48,752,695 common shares issued and outstanding.
Kinbauri Web-Site: www.kinbauri-gold.com.