TORONTO, July 14, 2016 /CNW/ - Roxgold Inc.
("Roxgold" or "the Company") (TSX.V: ROG) is pleased to announce
that International Finance Corporation ("IFC") has exercised the
12.9 million warrants issued to them on September 9, 2015, exercisable for one additional
common share of the Company, at a conversion price equal to
C$0.90 per share, fourteen months
prior to the warrants' expiry date of September 9, 2017. This represents approximately
US$9 million of total proceeds for
the Company.
"The Company is pleased with this early exercise which will
allow us the financial flexibility to accelerate exploration at the
55 Zone, Bagassi South and regionally," commented John Dorward, Roxgold's President and CEO. "Our
goal is that further exploration will support additional gold
production and mine life growth at Yaramoko, and we thank IFC for
having exercised their warrants early to support an aggressive
program commencing in the fourth quarter."
The Company plans to provide a detailed exploration plan in late
Q3 which, at this stage, is considered likely to include the
following components:
- Expansion drilling at the 55 Zone to delineate potential
extensions to strike below the floor of the current mine plan at
430 metres
- Further drilling at the QV1 and QV' Zones at Bagassi South to
further delineate and define the recently released maiden resource
(see press release dated April 27,
2016)
- Structural studies and analysis to identify prospective
horizons for additional zones in proximity to the 55 Zone and other
targets adjacent to the Boni Shear Zone
- Further auger and soil geochemistry on the southern portion of
the Yaramoko concession to extend the Kaho Zone
Roxgold expects to release the results of its recently completed
11,000 metre program at the 55 Zone next month when final assays
have been received. This program was designed to potentially expand
the resource estimate in areas of historically limited drilling.
Following the collation and interpretation of these results, they
will be used to assist targeting for the drilling program to
commence in the fourth quarter.
Management Change
The Company is also pleased to announce the appointment of
Yan Bourassa to Vice President,
Geology. Mr. Bourassa is a Geologist with 20 years of experience in
the gold industry in Africa and
the Americas, whose experience ranges from exploration to
operations and resource estimation. Previously, Mr. Bourassa has
managed regional exploration programs at the continent level as
well as brownfields exploration at the mine level.
Most recently, Mr. Bourassa was Director of Business Development
at Golden Star Resources where he was directly involved in the due
diligence conducted by Royal Gold
which led to a critical investment. Also while with Golden
Star Resources, Mr. Bourassa directly contributed to the discovery
of the Wassa underground deposit, which transformed the company
from an open-pit focused company to an underground producer.
Mr. Bourassa holds a Bachelor of Science degree and a Master of
Science degree in Geology from the University of Quebec. He has been involved with
international research projects and has co-authored multiple peer
reviewed publications on gold systems in West Africa.
"We are pleased to welcome Yan to the Roxgold management team,
and are confident that he will bring a level of experience to the
Company that will significantly contribute to the growth of
Yaramoko and Roxgold as a Company," commented John Dorward, Roxgold's President and CEO.
Mr. Ben Pullinger, Roxgold's Vice
President of Exploration has tendered his resignation in order to
pursue other interests. The board of directors and management of
Roxgold would like to thank Ben for his significant contribution
over recent years in progressing the Yaramoko Gold Project from its
initial resource estimate into production and wishes him every
success in his future pursuits.
Expected Upcoming Catalysts
- Results from the completed 11,000 metre advanced definition and
expansion drill program at the 55 Zone expected to be released in
August
- The completion of an updated mine plan for Yaramoko, which will
incorporate recent resource drilling, prior to the end of the
year
- Further assessment of the technical and economic aspects of the
Bagassi South deposit expected to be reported in the fourth quarter
of 2016
- Roxgold remains confident that commercial production at
Yaramoko will be achieved prior to the end of the third
quarter.
Qualified Persons
The exploration and Mineral Resource technical contents of this
press release have been reviewed and approved by Yan Bourassa, M.Sc Geology, a "Qualified Person"
pursuant to NI 43-101. Mr. Bourassa is Vice President of Geology
and a member of the Association of Professional Geoscientists of
Ontario.
About Roxgold
Roxgold is a gold mining company with its key asset, the high
grade Yaramoko Gold Mine, located in the Houndé greenstone region
of Burkina Faso, West Africa. The Company expects to reach
commercial production in Q3 2016. Roxgold trades on the TSX Venture
Exchange under the symbol ROG and as part of the Nasdaq
International Designation program with the symbol OTC: ROGFF.
"Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release."
These statements are based on information currently available
to the Company and the Company provides no assurance that actual
results will meet management's expectations. In certain cases,
forward-looking information may be identified by such terms as
"anticipates", "believes", "could", "estimates", "expects", "may",
"shall", "will", or "would".
Although the Company believes the expectations expressed in
such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future
performance and actual results or developments may differ
materially from those in the forward-looking statements. Factors
that could cause actual results to differ materially from those in
forward-looking statements include: changes in market conditions,
unsuccessful exploration results, changes in the price of gold,
unanticipated changes in key management personnel and general
economic conditions. Mining exploration and development is an
inherently risky business. Accordingly, actual events may differ
materially from those projected in the forward-looking statements.
This list is not exhaustive of the factors that may affect any of
the Company's forward-looking statements. These and other factors
should be considered carefully and readers should not place undue
reliance on the Company's forward-looking statements. The Company
does not undertake to update any forward-looking statement that may
be made from time to time by the Company or on its behalf, except
in accordance with applicable securities laws.
SOURCE Roxgold Inc.