Barrick & Augusta Court Nevada’s Gold Prince
Bullfrog Gold Corp. (CSE: BFG)(OTC: BFGC) now has the backing of the gold king and other royalty.
Bullfrog recently completed the work necessary to buy Barrick Gold’s mining claims, historical resources, permits, and water rights over 1,500 acres in the Bullfrog mine area — in the heart of a Nevada land play that has been heating up quickly with several hundred million in recent acquisitions.
This week, it bought that land from Barrick, taking its current land position of 5,250 acres to 6,750 acres.
Barrick was content to take shares — which means they think there’s upside — in Bullfrog in consideration. Barrick now owns 15.9% of Bullfrog after being issued 54.6 million units at C$0.20, and can exercise warrants at C$0.30 over the next four years to become a 19.9% shareholder.
Alongside the land purchase, Bullfrog is raising C$22 million at the same price with Augusta Investments taking the entire thing and assuming management of the company. Augusta will own 31.9% of the outstanding shares and can go to 40.2%.
Maryse Bélanger will become President, CEO, and Director of Bullfrog. Maryse is a tour de force in mining, having provided oversight and project management through some of the industry’s key strategic acquisitions. Most recently, she was the President, COO, and Director of Atlantic Gold, which sold to Santa Barbara for C$722 million.
Joining her on the Bullfrog executive team will be other members of the Augusta Group management team.
It’s a top team with a running start. They’ll have C$22 million, a 636,000 ounce gold resource, and two past-producing pits.
Barrick CEO Mark Bristow even commented on the deal, saying it will “create an exciting new mining project, led by a skilled team and with strong financial backing.”
Richard Warke, the billionaire mining executive who chairs the Augusta Group also weighed in, saying he sees “a very exciting time ahead for Bullfrog and its shareholders.”
Yours in profits,
Editor, Resource Stock Digest
Mike Fagan has mining in his blood. As a teenager he staked countless gold and silver properties in Nevada alongside his dad Brian Fagan, who created the Prospect Generator model that’s still widely used today in the resource space. One of those staking projects was put into production by a major Canadian mining company — a truly rare and profitable experience. That background uniquely qualifies him as a mining stock speculator. One of the most well-known names in the business, Mike is now putting that experience to use for the benefit of Resource Stock Digest and Hard Asset Digest readers.