Friday, 13 April 2012

Bravo Gold to change name to Homestake Resource, share consolidation approved

Bravo Gold Corp (CVE:BVG) said Friday that the TSX Venture Exchange has approved the company’s share consolidation as well as a corporate name change to Homestake Resource Corporation.
Beginning on April 16, the company will trade on a post-consolidation basis under its new name and trading symbol "HSR".
Approval was given for the consolidation of the issued common shares of the company on a basis of one post-consolidation common share for every 10 pre-consolidation common shares.
"Our new corporate name and ticker symbol will emphasize the company’s major asset, the Homestake Ridge property, and better reflect the growing importance of silver, copper, lead, and zinc in addition to gold being discovered at the company’s Homestake and Kinskuch properties,” said Bravo president Joe Kizis.
"And with these corporate changes, we look forward to continuing to expand the resource base at our Homestake Ridge and Kinskuch properties to become the next major gold-silver district in British Columbia."
The company said it believes it will benefit from greater investor interest as a result of the share consolidation, as well as improved trading liquidity, and an ability to raise additional capital at a higher price per share.
Bravo said that the change in the number of issued and outstanding shares that will result from the move will “cause no change in the capital attributable to the common shares and will not materially affect any shareholder's percentage ownership in the company.”
Ownership, however, will be represented by a smaller number of shares.
As of today, the company has a total of around 215.4 million shares issued and outstanding, and after the consolidation of shares is completed, it is expected to have around 21.5 million issued and outstanding.
Bravo said it plans an aggressive 2012 exploration and development program on the Homestake Ridge and Kinskuch properties, located in northwestern British Columbia, which will concentrate on the drill delineation of the newly discovered South Reef deposit at Homestake Ridge.
The program will also see extensive drilling of a potential mineral deposit at Kinskuch, discovered in the 2011 exploration season.
In addition, the program will include exploration drilling, ground geophysics and further evaluation of several other encouraging exploration targets, said the company.
A defined resource at South Reef and possibly at Kinskuch, together with any new discoveries, will add to the NI 43-101 compliant resources at the two deposits already discovered and delineated by Bravo at the Homestake Ridge property.
Mineralization at South Reef is open at depth and along the full strike-length of the target horizon, which is equal to the cumulative strike-length of the previously delineated main Homestake and Homestake Silver deposits, the company said.
Combined, the Main Homestake and Homestake Silver deposits contain a current NI 43-101 compliant indicated resource, at a 3.0 g/t gold equivalent cut-off, of 191,000 ounces of gold and 1.35 million ounces silver, plus an inferred resource of 530,000 ounces gold and 13.4 million ounces silver.
Meanwhile, exploration on the Kinskuch project this year will focus on offset drilling of the silver-rich, polymetallic VMS-style mineralization intersected by Bravo in 2011 at the Illiance River trend located in the eastern part of the property.

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