Monday, 18 June 2012

Batero Gold announces receipt of prospectus for previously issued special warrants

Canada-based Batero Gold (CVE:BAT) announced Monday that it has obtained a receipt for its final short form prospectus filed in the provinces of British Columbia, Alberta and Ontario.
The prospectus qualifies the distribution of 9,714,700 company units issuable upon the automatic exercise of 9,714,700 previously issued special warrants.
Each unit consists of one common share and one-half of one common share purchase warrant of Batero Gold. Each warrant entitles the holder to acquire one common share at a cost of 90 cents per share, until April 26, 2014.
The company reported at the end of April that it had closed an oversubscribed special warrant financing co-led by Raymond James and Cormark Securities.
It also completed a non-brokered special warrant financing on the same terms as the brokered financing.
Batero, therefore, issued a total of 9.7 million special warrants at a price of 65 Canadian cents each, for total proceeds of $6.3 million.
Under the brokered financing, the company issued 9.1 million special warrants for proceeds of C$5.9 million, and 600,000 special warrants as part of the non-brokered financing for proceeds of C$390,000.
The company said the new funds will be used to advance its Quinchia project in Colombia, within a planned preliminary economic assessment, including additional drilling and metallurgical work, and for working capital and general corporate purposes.
Batero Gold’s Quinchia gold project is located within the Middle Cauca Belt in Colombia. The Quinchia project is host to 3.5 million ounces of gold in the indicated resource category (248.5 million tonnes averaging 0.44 g/t gold ) and 2.6 million ounce of gold in the inferred mineral resource category (242.4 million tonnes averaging 0.33 g/t gold).
Batero’s La Cumbre porphyry deposit is located in the southern area of the Quinchia project, and will be the company’s focus for growth in 2012.
The project has significant exploration potential as more than 70 per cent of Quinchia is unexplored.
In late March, Batero unveiled information on the oxide resource potential and metallurgical test work contained in its NI 43-101 compliant technical report recently filed for the Batero-Quinchia project.
As part of Batero’s planned 2012 work program to evaluate the potential of a high grade development option at the La Cumbre porphyry deposit, the company said it will look to improve project economics through low cost heap leach mineral processing.
Batero's $8 million, 12-month work program for the project in 2012 includes 15,000 metres of drilling, and an updated resource estimate within a PEA for the La Cumbre area of the property.

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