pcNewsWire – Bluestone Resources Inc. (TSX-V: BSR) intends to complete a non-brokered private placement of 500,000 common shares at $1.50 for gross proceeds of $750,000
Bluestone Resources intends to use the proceeds of the private placement for general working capital purposes. The private placement forms part of the company’s executive compensation plan for the new management team.
Bluestone Appoints Mr. Darren Klinck as President and CEO, Announces Private Placement, Grants Options
VANCOUVER, BRITISH COLUMBIA – Bluestone Resources Inc. (TSX VENTURE:BSR) (“Bluestone” or the “Company”) today announced the appointment of Mr. Darren Klinck as President and Chief Executive Officer (CEO) effective 1 August 2017. The Company will also complete a non-brokered private placement of 500,000 common shares at $1.50 for gross proceeds of $750,000 and issue 5,000,000 stock options to certain directors, officers and consultants.
Appointment of CEO
Mr. Klinck is a graduate of the Haskayne School of Business at the University of Calgary and is a highly regarded mining executive with a broad range of international experience.
Mr. Klinck was most recently Executive Vice President & Head of Corporate Development for OceanaGold Corporation responsible for overseeing the capital markets as well as the mergers and acquisitions strategy. Over the past ten years at OceanaGold, Mr Klinck’s various responsibilities have also included oversight of project teams managing exploration, corporate social responsibility (CSR) and community engagement programs as well as extensive government relations activities.
“We are very fortunate to have Darren join our team as Bluestone transitions towards becoming Central America’s next high grade gold producer,” stated John Robins, Chairman and interim CEO.
“During his tenure at OceanaGold, Mr. Klinck was part of the executive leadership team that successfully grew the company from a single asset producer to one of the mining industry’s most respected mid-tier gold producers, operating in multiple jurisdictions with one of the lowest cost structures today. Mr. Klinck’s broad experience in a development and operating environment covering areas in corporate strategy, capital markets, mergers and acquisitions and corporate development will be a strong asset to Bluestone as we continue to build out our development team.”
The Company intends to complete a non-brokered private placement of 500,000 common shares at a price of $1.50 per share for gross proceeds of $750,000. The Company intends to use the proceeds of the private placement for general working capital purposes. The private placement forms part of the Company’s executive compensation plan for the new management team. All securities will be subject to a four-month hold period. No finder’s fees will be paid with respect to the private placement. The private placement is subject to TSXV acceptance.
Subject to the TSXV acceptance and the Company’s stock option plan, the Company intends to grant an aggregate of 5,000,000 stock options to certain directors, officers and consultants at an exercise price of $1.50 valid for terms ranging from three to five years from the date of grant. The option grant will be effective on the date the Company’s previously issued subscription receipts are converted into common shares, which is expected to be in mid-June, 2017.
The Company has also filed an amended preliminary economic assessment (“PEA”) and an amended and restated Annual Information Form on Sedar. The amendments address certain minor non-technical deficiencies in the previous PEA, and do not affect the conclusions in the PEA. The Company has also filed its preliminary prospectus to qualify the issuance of common shares upon the conversion of the previously issued subscription receipts and convertible notes.
About Bluestone Resources
Bluestone owns a 100% interest in the Cerro Blanco Gold and Mita Geothermal Projects located 160 km southeast of Guatemala City in Guatemala. Cerro Blanco is one of the world’s highest grade undeveloped gold projects that is fully permitted for production. The Cerro Blanco Project economics as disclosed in the Company’s press release dated February 7, 2017 announcing the results of its Preliminary Economic Assessment (“PEA”) and updated mineral resource estimate for Cerro Blanco indicate a rapid pay-back, high margin, underground mining project with robust economics in the current gold price environment. At a gold price of US$1,250/oz, the Cerro Blanco base case estimate generates an after-tax net present value at a 5% discount rate of US$317 million and an internal rate of return of 43.9%. The proposed mine is expected to operate over a nine year mine-life with total gold and silver production of approximately 952,000 ounces and 3,141,000 ounces, respectively. Initial capital expenditures to fund construction and commissioning is estimated at US$170.8 million. The all-in sustaining cash costs (as defined per World Gold Council guidelines, less corporate general and administration costs) is estimated to be US$490 per ounce of gold produced.
On behalf of the Board
Bluestone Resources Inc.
John Robins, Chairman and Chief Executive Officer
For further information, contact:
John Robins at (604) 657-6226