CALGARY, ALBERTA--(Marketwire - Feb. 21, 2013) - John E Squarek, President and CEO of MGold Resources Inc. ("MGold" or the "Corporation") (TSX VENTURE:MNI) is pleased to announce the completion of a third party independent engineering evaluation by the Resources Evaluation and Advisory Group of Deloitte LLP. This report covers the two proposed property acquisitions which were previously announced on November 16, 2012 and January 4, 2013. This evaluation has an effective date of March 31, 2013.
The report anticipates proved reserves before royalty of 676,200 BOE comprising 262,400 barrels of light oil and 2.48 bcf of natural gas. It also anticipates probable reserves before royalty of 1,470,000 BOE comprising of 475,200 barrels of light oil and 5.90 bcf of natural gas.
Together the proved and probable reserves of 2,154,700 BOE have an estimated net present value before tax discounted at 10% of $21,999,600. MGold currently has 42,444,024 shares issued and outstanding.
MGold expects to complete a private placement offering of convertible debentures in the principal amount of up to $3,000,000 to provide the financing for the acquisition of these properties as previously announced on January 31, 2013. The closing of the 2 proposed acquisitions and the convertible debenture private placement should occur on or before March 29, 2013. The completion of the 2 proposed acquisitions is subject to a number of conditions including, negotiation and execution of a definitive agreement, receipt of all required regulatory approvals, including approval of the TSX Venture Exchange and completion of due diligence investigations of MGold.
Forward Looking and Cautionary Statements
This news release contains certain forward‐looking statements (forecasts) under applicable securities laws relating to future events or future performance. Forward‐looking statements are necessarily based upon assumptions and judgments with respect to the future. In some cases, forward‐looking statements can be identified by terminology such as "may", "will", "should", "expect", "projects", "plans", "anticipates" and similar expressions. These statements represent management's expectations or beliefs concerning, among other things, future operating results and various components thereof affecting the economic performance of MGold. Undue reliance should not be placed on these forward‐looking statements which are based upon management's assumptions and are subject to known and unknown risks and uncertainties, including the business risks discussed above, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward ‐looking statements . Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted. These statements speak only as of the date specified in the statements.
The Company's actual results could differ materially from those anticipated in the forward looking statements contained throughout this news release as a result of the material risk factors set forth below:
- volatility in market prices for oil and natural gas;
- liabilities inherent in oil and natural gas operations;
- uncertainties associated with estimating oil and natural gas reserves;
- geological, technical, drilling and processing problems; and
- general business and market conditions.
These factors should not be construed as exhaustive. Unless required by law, the Company does not undertake any obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.
There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.
Barrels of oil equivalent (BOE) may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet (Mcf) of natural gas to one barrel (bbl) of oil is based on an energy conversion method primarily applicable at the burner tip and is not intended to represent a value equivalency at the wellhead.
MGold Resources Inc. is a Lethbridge, Alberta based corporation engaged in the exploration for minerals. The Corporation's common shares are listed on the TSX Venture Exchange under the trading symbol "MNI".
Neither the TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.