Apr. 15, 2011 (TheNewswire.ca) --
King's Bay Gold Corporation (TSX.V: KBG) announces a clarification of its previous press release of June 16th, 2010 concerning the relinquishing of its 40% interest in the Bobjo Property in the Red Lake Mining Division of Ontario. This press release is being issued at the request of the TSX Venture Exchange Inc.
The header to the June 16th, 2010 press release stated that King's Bay Gold had a 50% ownership interest in the Bobjo Mine Project. In fact, King's Bay Gold had a 40% interest, as correctly stated in the body of that press release.
In a Property Interests Exchange Agreement dated June 14th, 2010 (the "Agreement"), King's Bay Gold Corporation (TSXV:KBG) ("King's Bay Gold") sold its remaining interests of approximately 40% in the Bobjo Mine Project, located in the Earngey and Agnew Townships of the Red Lake Mining Division of Ontario, to Mainstream Minerals Corporation (TSXV:MJO) (OOTC:MSMCF) ("Mainstream Minerals"). Pursuant to the Agreement, King's Bay Gold agreed to cancel the advance receivable related to the project of approximately $140,000 from Mainstream Minerals to King's Bay Gold.
As consideration under the Agreement, Mainstream Minerals agreed to:
(a) assign to King's Bay Gold its one hundred percent (100%) interest in the Raleigh Lake property;
(b) grant 250,000 common shares of Mainstream Minerals to King's Bay Gold; and
(c) transfer title of ownership on various pieces of equipment valued at approximately $16,000.
The June 16th, 2010 press release stated that King's Bay Gold would receive title to four un-patented mining claims in the Raleigh Lake Area. In fact, King's Bay Gold was assigned Mainstream Minerals' 100% interest in an Option Agreement dated September 10th, 2009 between Mainstream Minerals and Perry English, on behalf of Rubicon Minerals Corporation (TSX:RMX) (AMEX:RBY) (the "Option Agreement"), which if exercised in full, would convey to King's Bay Gold's all right and title to the aforementioned mining claims. As a result, King's Bay assumed the obligations as optionee under the Option Agreement. To fully exercise its option under the Option Agreement, King's Bay has assumed the following outstanding payments and issuance of shares:
On September 10th, 2010: the sum of $12,000 and 50,000 common shares;
On September 10th, 2011: the sum of $16,000 and 50,000 common shares;
On September 10th, 2012: the sum of $25,000; and
On September 10th, 2013: the sum of $35,000.
Upon full payment King's Bay will be entitled to a 100% interest in the aforementioned mining claims, subject to Rubicon Minerals Corporation retaining a 1.5% Net Smelter Interest in the property.
Both parties further agreed to waive any and all present and future claims whatsoever against one another in relation to the Bobjo Mine Project Joint Venture Earn-In Agreement of September 12th, 2006, including all amendments entered into thereafter, and to save the other party harmless from any and all present and future third party claims whatsoever as these may relate to the Bobjo Mine Project.
The Press Release of June 16th, 2010 may have also left an erroneous impression that Mr. Ron Rivet was the President and CEO of King's Bay. In fact Mr. Rivet was the Exploration Coordinator for King's Bay and did not ever hold the position of President or CEO of King's Bay.
About King's Bay Gold Corporation
King's Bay Gold Corporation is a very active Canadian mineral exploration and development company with mineral projects located in two of Canada's main gold camps - the Red Lake, ON and Rainy River, ON gold camps.
KBG Shares Outstanding: 84,981,914
King's Bay Gold Corporation
John Archibald
President & CEO
info@kingsbaygold.com
www.kingsbaygold.com
This news release includes certain forward-looking statements concerning the future performance of King's Bay Gold Corporation's business, its operations and its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. Forward-looking statements are frequently identified by such words as "may", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. These forward-looking statements represent management's best judgment based on current facts and assumptions that management considers reasonable. The Company makes no representation that reasonable business people in possession of the same information would reach the same conclusions. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing and as described in more detail in the Company's recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking statements and readers are cautioned against placing undue reliance thereon.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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