FRX Fortune River Resource Corp.

Bravada Gold Corporation (TSX VENTURE:BVA)(FRANKFURT:6BG) and Fortune River
Resource Corporation (TSX VENTURE:FRX)(FRANKFURT:RG7A) report that their
respective Boards of Directors have agreed on the ratios for the proposed
amalgamation after considering advice from external advisors relative to the
preparation of a Fairness Opinion addressed to the Amalgamating Companies. 


The ratios are:

FRX: 0.85 share of the Amalgamated Company for 1 share of FRX.

BVA: 1.00 share of the Amalgamated Company for 1 share of BVA.

Previously, as disclosed in a common news release (NR-10-10 for BVA and NR-13-10
for FRX), the Companies had agreed on a preliminary basis on ratios of 0.5
shares of the Amalgamated Company for 1 share of FRX and 1.0 share of the
Amalgamated Company for 1 share of BVA. 


The new ratios acknowledge a higher value for FRX's Wind Mountain gold resource
than is currently being reflected in FRX's share price and results in the
Amalgamated Company being owned equally by shareholders of FRX and shareholders
of BVA. The proposed Amalgamation is subject to appropriate approvals of
shareholders and of the Supreme Court of British Columbia, and acceptance by the
TSX Venture Exchange, to merge into a single Amalgamated Company, which would
retain the name Bravada Gold Corporation.


The Amalgamated Company will focus exploration activities on its combined 20
Nevada properties (approximately 13,000ha), located in the Battle
Mountain-Eureka trend, the Walker Lane Trend, and the Northern Nevada Rift. Both
companies are currently drilling exploration properties and both are well
advanced toward acquiring other strategic properties in these prolific Nevada
gold trends. BVA is drilling the PH Carlin-style exploration property, located
along the Battle Mountain-Eureka Gold trend 6 km east of the Tonkin Springs gold
deposits and 13km northwest of the Gold Bar satellite deposits. FRX and partner
Christopher James Gold Corp are drilling the Buz low-sulfidation exploration
property, located along the Walker Lane Gold trend 3km northeast of the
partnership's Highland property.


In addition to the extensive package of exploration properties along Nevada's
long-established gold trends, the Amalgamated Company will include an existing
mineral resource at its Wind Mountain property, a previous Amax Gold
open-pit/heap-leach mine. The project contains an estimated 406,000 ounces of
gold in the Measured plus Indicated Resource categories, 33.7 million tons
averaging 0.411g/t Au, using a cutoff grade of 0.257g/t Au, plus an additional
92,000 ounces of gold in the inferred category, 9.8 million tons averaging
0.308g/t Au, using the same cut-off grade (see FRX news release dated January 8,
2008). The company recently commissioned an independent NI43-101-Compliant
Preliminary Economic Assessment and associated Technical Report by Mines
Development Associates (MDA), a well-respected engineering group based in Reno.
MDA modelled an open pit using $850 per ounce of gold and $14.50 per ounce of
silver. MDA's report indicates the project will have an NPV@5% of US$13.2million
(IRR=15%) at $850 per ounce gold and, assuming a 20% increase in metal prices,
an NPV@5% of US$43.7million (IRR=38%) at $1,020 per ounce gold for the same pit
design (see FRX news release NR-05-10 dated April 13, 2010). MDA recommends work
that could improve economics further and advance the project through
pre-feasibility at a modest cost.


President Joe Kizis commented, "Although valuing junior exploration companies is
difficult at best, we feel we are providing both groups of shareholders with
significant upside. BVA shareholders participate in an established resource,
which we feel is underappreciated in the market and will improve with further
optimization studies. FRX shareholders participate in an excellent portfolio of
exploration properties that have potential for very large Carlin-type gold
deposits. Both groups of shareholders will benefit from a more steady flow of
news as the properties are advanced by the Amalgamated Company and its
partners."


It is anticipated that Special meetings of both Companies will be convened
during the month of November 2010 for resolutions of the Members of each Company
followed by Court application and submissions to the TSX Venture Exchange for
listing of the shares of the Amalgamated Company.


About Bravada Gold Corporation

Bravada Gold Corporation is a member of the Manex Resource Group of companies
with an exploration office in Reno, Nevada from which it is exploring its
extensive Carlin-type gold holdings strategically located within the Battle
Mountain/Eureka "Cortez" gold trend in Nevada. Bravo Gold Corp. (BVG.V) owns 34%
of 32,519,218 Bravada common shares currently outstanding.


About Fortune River Resource Corp.

Fortune River Resource Corp. is exploring for high-grade gold deposits within
two prolific gold producing geologic provinces, Nevada and Ontario. The Wind
Mountain, East Manhattan, Highland, Baxter, Mud Springs, Buz and Zebra projects
are located in Nevada and the Drayton project is located in Ontario.


Joseph Anthony Kizis, Jr. (P.Geo.) is the Qualified Person responsible for
reviewing the technical results in this release.


On behalf of the Board of Directors of Bravada Gold Corporation and Fortune
River Resource Corporation


Joseph A. Kizis Jr., Director, President, Bravada Gold Corporation and Fortune
River Resource Corporation


This news release may contain forward-looking statements including but not
limited to comments regarding the timing and content of upcoming work programs,
geological interpretations, receipt of property titles, potential mineral
recovery processes, etc. Forward-looking statements address future events and
conditions and therefore involve inherent risks and uncertainties. Actual
results may differ materially from those currently anticipated in such
statements. These statements are based on a number of assumptions, including,
but not limited to, assumptions regarding general economic conditions, interest
rates, commodity markets, regulatory and governmental approvals for the
company's projects, and the availability of financing for the company's
development projects on reasonable terms. Factors that could cause actual
results to differ materially from those in forward looking statements include
market prices, exploitation and exploration successes, the timing and receipt of
government and regulatory approvals, and continued availability of capital and
financing and general economic, market or business conditions. Bravada Gold
Corporation and Fortune River Resource Corp do not assume any obligation to
update or revise its forward-looking statements, whether as a result of new
information, future events or otherwise, except to the extent required by
applicable law.

Fortune River Resource Corp. (TSXV:FRX)
Historical Stock Chart
From May 2024 to Jun 2024

Fortune River Resource Corp. (TSXV:FRX)
Historical Stock Chart
From Jun 2023 to Jun 2024