Kinbauri Receives Final Scoping Study Report; Closes First Tranche of Private Placement
05 March 2009 - 11:05AM
Marketwired
Kinbauri Gold Corp. ("Kinbauri") (TSX VENTURE: KNB) (FRANKFURT:
3KG.DE) is pleased to announce that it has received the final
report of the Preliminary Economic Assessment or Scoping Study (the
"Scoping Study") prepared by Scott Wilson Roscoe Postle Associates
("SWRPA") for its 100% owned El Valle/Carles project (the
"Project") in northwestern Spain. As announced in the press release
February 12, 2009, under the base case scenario, the results reveal
a pre-tax NPV (at a 10% discount rate) of CAD $132M and an IRR
(internal rate of return) of 42%. Using current metal prices and
exchange rates (as of February 12th) the Project has a pre-tax NPV
(at a 10% discount rate) of CAD $221M and an IRR of 58%. The
financial highlights of the study are summarized below.
Scoping Study(1) Financial Summary
---------------------------------------------------------------------------
Base Case Scenarios(2) Current Metal Prices(3)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Undiscounted cash flow
(pre-tax) CAD 274,244,800 CAD 422,652,800
---------------------------------------------------------------------------
NPV @ 10% (pre-tax) CAD 132,537,600 CAD 220,980,800
---------------------------------------------------------------------------
IRR (pre-tax) 42% 58%
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Undiscounted cash flow
(after tax) CAD 213,307,200 CAD 331,948,800
---------------------------------------------------------------------------
NPV @ 10% (after tax) CAD 94,235,200 CAD 164,955,200
---------------------------------------------------------------------------
IRR (after tax) 33% 47%
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Total gold production 894,000 oz 894,000 oz
---------------------------------------------------------------------------
Total copper production 83,710,000 lbs. 83,710,000 lbs.
---------------------------------------------------------------------------
---------------------------------------------------------------------------
(1) All conversions to CDN dollar are based on an exchange rate of 1.6 CDN
equals 1 euro
(2) Base case price $750 Au, $2.50 Cu, Exchange rate Euro to USD 1.4
(3) Current price $910 Au, $1.50 Cu, Exchange rate Euro to USD 1.3
Cautionary Statement as Required by NI 43-101, Sect 2.3 (3):
This assessment is preliminary in nature; it 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, and there is no
certainty that the preliminary assessment will be realized.
The Scoping Study will be filed on SEDAR shortly.
Other Corporate Developments
Kinbauri also announced today that it has closed the first
tranche of its previously announced (February 20) brokered private
placement of up to 6,666,667 Units of Kinbauri at a price of $0.45
per Unit. The first tranche consisted of 3,208,601 Units for a
total of $1,443,870.45. Each Unit consists of one common share and
one-half of a common share purchase warrant. Each whole warrant
entitles the holder to purchase one common share at a price of
$0.70 for a period of 12 months from the date of issuance. The
securities are subject to a four month hold period from the date of
the closing.
In connection with the closing of the first tranche of the
offering, M Partners Inc. has been paid a commission of $59,030.59,
and broker warrants to purchase an aggregate of 131,179 Units at a
price of $0.45 for a period of 12 months from the date of the
closing. The proceeds of the financing will be used for general
working capital purposes and the advancement of the El Valle/Carles
project in northwestern Spain. The placement is subject to
acceptance by the TSX Venture Exchange.
Kinbauri continues its assessment of strategic alternatives
towards advancing the Project for the purpose of ensuring maximum
shareholder value (see press release dated December 15th, 2008).
The Company plans to release an update on this in the near term.
Dr. Vern Rampton, Kinbauri's President and Chief Executive Officer
commented, "We are pleased to be making this level of progress in
advancing the El Valle project in these difficult times. We believe
it says a lot for the quality of the project and the people we have
working on it."
This press release has been prepared by Dr. V. N. Rampton, P.
Eng in his capacity as a qualified person under the guidelines of
NI 43-101.
About Kinbauri:
Kinbauri is a TSXV - Tier 1 Mineral Exploration Company focused
on the development of precious metal prospects in Spain, Nevada and
Canada. Its immediate focus is to begin operations at its El
Valle/Carles property in Asturias, northwestern Spain by 2011.
Immediately prior to this placement it had 48,894,450 common shares
issued and outstanding.
This press release contains certain forward-looking statements,
which are based on the opinions and estimates of management at the
date the statements are made, and are subject to a variety of risks
and uncertainties and other factors that could cause actual events
or results to differ materially from those projected. Kinbauri
undertakes no obligation to update forward-looking statements if
circumstances or management's estimates or opinions should change.
The reader is cautioned not to place undue reliance on
forward-looking statements.
VISIT:
Kinbauri Gold's Hub at http://www.agoracom.com/IR/kinbauri where
investors can post questions and receive answers or review
questions and answers already posted by other investors. Kinbauri
Web-Site: www.kinbauri-gold.com
THIS PRESS RELEASE WAS PREPARED BY KINBAURI GOLD CORP. THE TSX
VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
Contacts: North America Darrell Munro, BB.A, LL.B Manager,
Corporate Communications 613-836-0198 dmunro@kinbauri-gold.com Dr.
Vern Rampton, P. Eng. President 613-836-2594 613-831-2730 (FAX)
vrampton@kinbauri-gold.com kinbauri@kinbauri-gold.com Europe
INVESTEL Ruediger (Rudy) Hnyk, CEO Investor Relations &
Telecommunications ceo@investel.de
Kinbauri Gold Corp Com Npv (TSXV:KNB)
Historical Stock Chart
From Jun 2024 to Jul 2024
Kinbauri Gold Corp Com Npv (TSXV:KNB)
Historical Stock Chart
From Jul 2023 to Jul 2024