VANCOUVER,
April 10, 2014 /PRNewswire/ - Gold
Bullion Development Corp. (TSXV: GBB) (OTCPINK: GBBFF) (the
"Company" or "Gold Bullion") announces that it has signed a
Memorandum of Understanding ("MOU") with IAMGOLD Corporation
("IMG") dated April 8, 2014 with
respect to IMG processing ore emanating from the Granada mine site at its Westwood Mill. After appropriate due
diligence, Management has determined IAMGOLD Corporation is the
best-positioned local mill facility to process the mineralized
material from Granada. In summary,
its proximity provides the most cost effective and economic option
for the Company due to the short hauling distance from the
Granada mine site.
The subject-mineralized material is to be mined
from the near surface drill indicated gold resource identified in
the Extend LONG Bars Zone. At this stage of property development,
the Company is targeting a total of 500,000 to 600,000 tonnes of
mineralized material for processing over a three-year period. The
transaction terms outlined in the MOU are non-binding on the
parties and the MOU is expected to be superseded by a definitive
milling agreement to be signed between the parties no later than
June 30th, 2014.
Memorandum of Understanding
Under the proposed terms of the MOU, IMG
anticipates milling between 500,000 to 600,000 tonnes of gold
mineralized material for Gold Bullion or 150,000 to 200,000 tonnes
on an annualized basis. Management has set out the initial terms of
the milling agreement at three years with the subject-mineralized
material to be milled in batches. It is expected typical
batch size will range from 35,000 to 50,000 tonnes with each batch
of material to be processed consecutively as one complete
batch.
Processing will take place on a schedule of one
batch every three months. Once each batch of ore has been
processed, settlement to Gold Bullion is to be made in the form of
recovered precious metals that will be deposited to Gold Bullion
metal accounts at the refiners' offices.
The milling agreement will have an Evergreen clause
that will renew the agreement automatically for an additional three
years upon completion of this first agreement unless either party
notifies the other in writing otherwise. This written notice
must be with 120 days advance notice prior to the end of this
initial term. The milling agreement can also be terminated earlier
for convenience or based on other changes in circumstances, again
by either party. Detailed specifics of the milling agreement will
be forthcoming when finalized by both parties.
About Gold Bullion Development Corp.
Gold Bullion Development Corp. is a TSX
Venture-listed junior natural resource company focusing on the
exploration and development of its Granada Property near
Rouyn-Noranda, Québec, and its
high grade Castle Silver Mine in Gowganda, Ontario. Additional
information on the Company's Granada gold property is available by visiting
the website at www.GoldBullionDevelopmentCorp.com and on
SEDAR.com.
"Frank J. Basa"
Frank J. Basa,
P.Eng.
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its
Regulation Service Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release. This news release may
contain forward-looking statements including but not limited to
comments regarding the timing and content of upcoming work
programs, geological interpretations, receipt of property titles,
potential mineral recovery processes, etc. Forward-looking
statements address future events and conditions and therefore,
involve inherent risks and uncertainties. Actual results may
differ materially from those currently anticipated in such
statements.
SOURCE Gold Bullion Development Corp.
