Edmonton, Alberta. Bandera Gold Ltd. (the “Company”) announced today it has signed a non-binding Letter of Intent (the “Letter of Intent”) with Minera San Jorge, S.A. de C.V., a Mexican corporation, and its affiliates (“MSJ”) to settle the existing disputes for the mining properties located in Mexico referred to as the Cinco Minas and Gran Cabrera properties (the “Properties”), whereby the Company will sell its interest in the Properties to MSJ (the “Proposed Transaction”) for a minimum of US $6,500,000 (“Six Million Five Hundred Thousand Dollars” or “$6.5MM”). The Company negotiated the Letter of Intent with MSJ using a third-party facilitator.
MSJ will have until October 8, 2012, to provide the Company with verifiable, third party proof of funds (“Proof of Funds”) in the minimum amount of $6.5MM, upon which the parties shall document and close the Proposed Transaction before November 07, 2012. If Proof of Funds is not established, the Company will discontinue the Proposed Transaction. The Letter of Intent does not limit the Company from continuing or pursuing all legal strategies to assert its rights to the above mentioned properties until the closing of the Proposed Transaction.
On Behalf of the Board
President and CEO
For further information please contact:
Stephen Roehrig, President and CEO (780) 465-4129
Or Micro Cap et al, Investor Relations at: (877) 642-7622
E mail: [email protected]
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. Information provided herein contains forward-looking statements. The reader is cautioned that assumptions used in the preparation of such information, which are considered reasonable by Bandera at the time of preparation, may prove to be incorrect. Actual results achieved will vary from the information provided and the variations may be material. There is no representation by Bandera that actual results achieved will be the same in whole or in part as those indicated in the forward-looking statements.