VANCOUVER, April 13,
2015 /CNW/ - Gold Bullion Development Corp. (TSXV: GBB)
(OTCPINK: GBBFF) (the "Company" or "Gold Bullion") is pleased to
announce that, further to the Company's press release of
March 11, 2015, Gold Bullion and
Takara Resources Inc. ("Takara") (TSX.V: TKK) have entered into a
definitive purchase and sale agreement (the "Agreement") for
Takara to acquire certain properties of Gold Bullion situated in
Ontario, through the acquisition
of Gold Bullion's wholly-owned subsidiary, Castle Silver Mines Inc.
("CSM")(the "Transaction"). CSM currently owns a 100%
interest in the 3,300-hectare Castle Silver Mine property, a past
producer located near the northern Ontario community of Gowganda and 85km northwest of the historic
Cobalt silver mining camp.
Under the terms of the Agreement, Takara will
acquire all of the issued and outstanding common shares of CSM from
Gold Bullion in exchange for 10,000,000 units of Takara issued in
equal stages of 2,500,000 units over a 4-year period (each unit
consists of one common share in the capital of Takara and one
common share purchase warrant exercisable at $0.10, expiring one year from the date of
issuance of the units). Gold Bullion proposes, subject to
regulatory and TSX Venture Exchange approval, to distribute the
units to shareholders of Gold Bullion. In addition, Gold Bullion
shall be entitled to have two nominees appointed to the board of
directors of Takara.
Pursuant to existing agreements currently in
place, (1) Gold Bullion will retain the right to earn a 1% NSR on
all CSM properties, which NSR will be distributed to shareholders
of Gold Bullion in the form of dividends, payable in cash; (2) 2%
of all direct costs incurred on exploration on the Castle Silver
Mine property is payable to the Matachewan First Nation; and (3)
the Castle Silver Mine property is subject to a sliding scale
royalty on silver production payable to a previous vendor, which
will start from 3% when the price of silver is US$15 or lower per troy ounce and up to 5% when
the price of silver is greater than US$30 per troy ounce and a 5% gross overriding
royalty on the sale of products derived from the property with a
minimum annual payment of $15,000 in
the form of royalties on all future production from the
property.
Pursuant to the terms of the Agreement, Takara
intends to complete a non-brokered private placement of up to
6,000,000 units (each, a "PP Unit") at a price of $0.05 per PP Unit for aggregate gross proceeds of
up to $300,000. Each PP Unit is
proposed to consist of one common share in the capital of the
Company (each, a "Common Share") and one Common Share purchase
warrant (each, a "Warrant"). Each Warrant will be exercisable to
acquire a Common Share at a price of $0.10 per Common Share for a period of two years
from the date of issuance of the PP Units. The proceeds from the
private placement are expected to be used for ongoing operations
and working capital purposes.
Further, pursuant to the terms of the Agreement,
Takara will settle approximately $40,000 of management fees owed to current
officers of Takara through the issuance of Common Shares at a price
of $0.05 per Common Share, subject to
TSX Venture Exchange approval.
Completion of the Transaction is subject to all requisite
regulatory approvals, including the TSX Venture Exchange
approval.
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 www.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.