VANCOUVER, March 11, 2015 /PRNewswire/ - Gold Bullion
Development Corp. (TSXV: GBB) (OTCPINK: GBBFF) (the "Company" or
"Gold Bullion") is pleased to announce that it has signed a Letter
of Intent ("LOI") with Takara Resources Inc. (TSX.V: TKK) aimed at
unlocking the value of the assets held by Gold Bullion's
wholly-owned subsidiary, Castle Silver Mines Inc. ("CSM"). These
assets feature the 3,300-hectare Castle Silver Mine Property, a
past producer located near the northern Ontario community of Gowganda and 85 km northwest of the historic
Cobalt silver mining camp.
Under the terms of the non-binding LOI, which establishes the
broad framework of a potential near-term agreement between the two
parties, Gold Bullion can elect to sell CSM to Takara for a total
of 10,000,000 units of Takara equally staged over a 4-year period
(each unit would consist of one common share of Takara and one
common share purchase warrant). Gold Bullion has the option
of entering into a definitive agreement with Takara within 15 days
after a 30-day due diligence period, commencing immediately.
Mr. Frank J. Basa, Gold Bullion
President and CEO, commented: "Given the recent important
discovery of gold and copper in channel sampling and trenching at
the past producing Castle Silver Mine, following our high-grade
drill intercept of 188.8 oz/ton silver over 10.1 feet (core length)
in CA11-08 in 2011, this is a very strategic time to leverage this
asset for the immediate and longer-term benefit of our
shareholders. The aim is to produce a win-win scenario for
both Gold Bullion and Takara."
"The development of Castle in a prolific mineral area can be
fast-tracked through a separate vehicle with an attractive share
structure while we focus on the exciting next stage of the Granada
Gold mine," Basa concluded.
Should Gold Bullion proceed with the definitive agreement,
completion of the transaction would be subject to all requisite
regulatory approvals relating to the transaction, including TSX
Venture Exchange approval.
Castle Silver Mine Property
Distinct trains of strongly altered, sulphide-rich, rusty,
angular boulders were discovered late last year on the Castle
Property (see Gold Bullion news release December 8, 2014), just a few hundred meters from
2011 drill hole CA11-08 that returned the exceptionally high-grade
silver intersection. CSM continues to investigate the source
of these mineralized boulders which may represent a separate gold
system at Castle overlooked by previous explorers and
operators.
The Castle Mine produced over 20 million ounces of silver
between 1917 and 1989 when Agnico Eagle, the last operator, closed
the mine due to low metal prices. Further information regarding the
property can be found in Gold Bullion's 43-101 Technical Report
dated August 15, 2011 filed on SEDAR
at www.sedar.com.
Qualified Person
The technical information in this news release was prepared
under the supervision of Mr. Frank J.
Basa, P. Eng., Gold Bullion's President and CEO, who is a
member of the Ontario Association of Professional Engineers and a
"Qualified Person" in accordance with National Instrument
43-101.
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 properties
is available by visiting the website at
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.
