Vancouver, BC (Financial Press) – Turning a company into a success story doesn’t happen overnight, but Vancouver-based Open Gold is getting a boost from two new properties and fresh management.
Four months into his appointment as CEO and president of Open Gold, and Bryson Goodwin has kept the company focused on gold, copper and silver in appropriate jurisdictions with the most upside potential for shareholders.
“The idea is to build an exciting successful exploration company that looks to promote shareholder interests first,” says Goodwin.
“I want Open Gold to be a success and will use all my skills and relationships to make that happen. Currently we are in active negotiations on a number of large, exciting properties.”
The acquisition of the highly prospective Mitchell property is only the first step in the business plan, he adds.
In May, Open Gold entered into an agreement with Foundation Resources Inc. for an option to acquire 100 per cent of the Mitchell Massive Sulfide Project (2,256 ha) located approximately 10 kilometres southwest of the former South Bay Mine (1.6 Mt mined at 2.5 per cent copper, 14 per cent zinc and 120 g/t per ton silver) by issuing a total of 1.3 million Open Gold shares, making total cash payments of $203,000 and incurring $1 million in exploration expenditures within 37 months of the Agreement.
Open Gold negotiated the option on the Mitchell property from Foundation Resources.
This highly prospective and easily accessible Volcanic Massive Sulfide gave the Open Gold the ability to promote and explore in the world class Red Lake mining district of Ontario.
Since acquiring its option on the Mitchell property, Open Gold has completed an assessment report and recently sent surface samples to be assayed at a laboratory.
Goodwin secured a financing for further development of the newly acquired exploration project. This resulted in a fast closing of an oversubscribed private placement.
“With the recent acquisition of the Mitchell property and the changes in management, Open Gold has embarked on a strategic acquisition campaign designed to place it at the forefront of the turning market expected in Q4 2012,” Goodwin says.
While the company waits for the assay results, Open Gold is planning an aggressive drill and exploration program set to commence later this year.
Open Gold also holds a 100 per cent interest in 16 highly prospective gold-copper mineral claims located in the Greenwood Mining Division of south central British Columbia, known as the Eholt Property, subject only to a 2.5 per cent net smelter return.
The Eholt Property is a 7,413 acre gold and copper exploration property located near the communities
of Grand Forks and Greenwood in the Boundary District of south central British Columbia. It lies 4 km northeast of the historic Phoenix Copper Mine which produced more than one million ounces of gold and 460 million pounds of copper during two separate 19 year periods of production.
The property, near a past producing mine, is located with near a major highway, hydro power lines and support communities. All of the proposed drill sites are also readily accessible on existing roads.
But with the mining industry in the bottom of a market correction, how has a relative newcomer like Open Gold managed to actually convince investors that now is a buying time or placement opportunity.
“Investors need to consider that a small well-structured company with good marketing and a strong business plan offers them the best potential upside for their investment,” says Goodwin.
“Right now, Open Gold is extremely de-risked and inexpensive.”
At CAD $0.065 a share it’s hard for investors to disagree.
“Current market conditions favour companies looking to grow through acquisition and exploration based development of assets,” Goodwin says.
“Open Gold will aggressively capitalize and exploit this short term weakness to the benefit of its investment partners.”
Prior to his appointment to Open Gold, Goodwin was director of investor relations for Klondex Mines Ltd.
“When I left KDX the stock was strong at $3.15. A lot of investors made money on that deal and asked to be included on my future deals. I sent out an email outlining my plans and made sure the investment made sense.”
Goodwin has over 18 years of experience in the public, private and financial markets, with a concentrated focus on corporate finance.
Open Gold’s biggest challenge remains the market in general but Goodwin remains optimistic.
“The market will improve, it always does and calling that shift is where reputations and fortunes are made,” he says.
Open Gold won’t be waiting for change to happen overnight.
“All I will say is it requires a giant investment in time and effort there is no magic bean or quick fix,” Goodwin says.
About Open Gold Corp.
Open Gold is a public company listed on both the TSX-V and the Frankfurt Exchanges. The company has an option to acquire 100% of the Mitchell Massive Sulfide Project. Open Gold also holds a 100% interest in 16 highly prospective gold-copper mineral claims located in the Greenwood Mining Division of south central British Columbia more specifically known as the Eholt Property. http://www.opengoldcorp.com
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