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3/27/2007 1:34:00 PM ET
PCFG - Corporate Update
TORONTO, March 27, 2007 /PRNewswire-FirstCall via COMTEX News Network/ --
Pacific Gold Corp. (OTCBB: PCFG) provided an update today on the Company and the Black Rock Canyon Mine.
The Company would like to remind its shareholders that the annual report reflects the financial position of the Company as at year end which was December 31st, 2006. As previously announced on March 1st, 2007 the company has completed a new financing and retired a majority of the existing convertible notes that are shown in the annual report.
The Company has received the first installment of the new financing and is currently working on meeting the requirements of the second installment which the Company expects to complete within the next couple of weeks.
From the March 1, 2007 press release;
"...On February 26, 2006, the Company sold $2,440,000 in an aggregate principal amount of 2 year convertible debentures ("Debentures") and warrants for an aggregate payment to the Company of $2,166,000 after fees and expenses. The Debentures are due February 26, 2009 and are convertible into common shares at a conversion price of $0.18 per share subject to change in various circumstances. The Company intends to use the proceeds for the Nevada Rae Gold Black Rock Canyon Mine upgrades, exploration activities, and general working capital purposes.
PCFG has used some of the proceeds from the new issue to retire the debentures previously issued to Palisades Master Fund, LLC. Palisades had originally purchased a face value note of $4.5 million in April 2006. To date Palisades had converted $1.8 million into equity. The remaining $2.7 million note was retired for $540,000.
In conjunction with the financing Crescent International which holds a $1.6 million convertible note also from April 2006, agreed to exercise 800,000 warrants for a reduced price of $0.20 (previously $0.30) per share for a total of $160,000. These funds are being applied to working capital."
The Black Rock Canyon mine has received the new dewatering equipment from Knelson Gravity Solutions. The mine site personnel are currently working to install the new system along with a second Knelson bowl which should allow the mine to operate with improved recoveries of gold. The equipment installation is expected to be completed within the next couple of weeks.
The changes include the installation of a Knelson 30" centrifugal bowl and a dewatering system. This Knelson bowl is in addition to the 48" bowl currently being used in the plant and the second bowl placed in circuit should improve gold recoveries. The dewatering system should allow a cleaner finished gravel product at the end of the processing cycle that will reduce time and cost for the mine reclamation requirements.
The modifications announced today are part of 2 needed changes that were identified during the processing of gold in Q3 of 2006. The other previously announced change was the installation of a Trommel screen to better wash the mined gravels.
The Company has taken delivery of all five Komatsu 785-3 haul trucks. Komatsu has repaired and re-conditioned the first 3 of the trucks to date. The Black Rock Canyon mine can operate at more than full capacity with 3 trucks. The Company expects to complete work on trucks #4 and #5 in the second quarter of 2007.
Black Rock Canyon Progress
The Company plans to complete the modifications to the plant and is currently training its drivers on the new Komatsu trucks. Once these activities are completed the mine will begin to process its current stockpile to test all of the new changes to equipment and the plant. After the testing process is complete, mining activities are planned to resume.
To find out more about Pacific Gold Corp. (OTCBB: PCFG), visit our website at www.pacificgoldcorp.com. Or contact the Company directly at 416-214-1483.
About the Company
The Company's business plan provides for the acquisition and development of production-ready and in-production mining operations. The Company is currently focused on alluvial gold and base metals operations located in western North America. Pacific Gold Corp. owns five operating subsidiaries: Nevada Rae Gold, Inc. ("Nevada Rae") owns and operates the Black Rock Canyon gold mine, located in north-central Nevada; Pilot Mountain Resources Inc. ("Pilot Mountain") owns Project W, a large tungsten based deposit in Nevada; Fernley Gold, Inc. ("Fernley Gold") acquired exclusive lease rights to mine the Lower Olinghouse Placers in north-western Nevada; Oregon Gold, Inc. ("Oregon Gold") owns the Bear Bench claims and Defiance mine, located in south-western Oregon; and Pacific Metals Corp. ("Pacific Metals") owns claims in San Juan and Delores Counties, Colorado, encompassing the historic Graysill Mine.
This news release includes forward-looking statements that reflect Pacific Gold Corp.'s current expectations about its future results, performance, prospects and opportunities. Pacific Gold Corp. has tried to identify these forward-looking statements by using words and phrases such as "may", "will", "expects", "anticipates", "believes", "intends", "estimates", "should", "typical", "we are confident" or similar expressions. These forward- looking statements are based on information currently available to Pacific Gold Corp. and are subject to a number of risks, uncertainties and other factors that could cause the Company's actual results, performance, prospects of opportunities in the remainder of 2007 and beyond, to differ materially from those expressed in, or implied by, these forward-looking statements.
SOURCE Pacific Gold Corp.
To find out more about Pacific Gold Corp. (OTCBB: PCFG), visit our website at www.pacificgoldcorp.com. Or contact the Company directly at (416) 214-1483
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