GoGold receives $15-million (U.S.) advance from Orion

Feb 6, 2014

GOGOLD RECEIVES SECOND US$15,000,000 ADVANCE FROM ORION MINE FINANCE WITH THE INTENTION TO BE IN PRODUCTION MAY 2014 AT PARRAL

GoGold Resources Inc. has received $15-million (U.S.) from Orion Mine Finance representing the second advance under the credit agreement dated Sept. 27, 2013. Further details about the debt financing arrangement with Orion Mine Finance is contained in GoGold’s news releases dated July 12, Sept. 18 and Sept. 30, 2013, which are available on SEDAR.

GoGold intends to use the net proceeds from the advance to complete the construction of its Parral tailings project in Chihuahua, Mexico, with the intention to start production in May, 2014, and for general working capital purposes.

The Parral tailings project is financed, permitted and is currently under construction. Progress has been excellent, and the team in Mexico has provided timely updates and photographs which can be viewed on the company’s corporate website. The heap leach pads are well under way, components of the processing facility are being fabricated and assembled, and the plan is to begin stacking ore in early April with the intention to start production in May, 2014.

GoGold’s San Diego exploration project adds additional upside in a growing pipeline of projects that have the potential for development over the next few years.

Parral tailings project

The project is in full construction and anticipated start-up is May, 2014. Currently 130 personnel and contractors are on-site and the number is expected to increase over the coming weeks. The earthworks are well under way and work is 70 per cent completed. The bulk of earthworks and civil work is scheduled to be completed by the end of February and structural steel fabrication and site erection are also proceeding well. February will be busy as more equipment arrives and additional contractors and staff are mobilized. Installation of liners for the heap leach pad will also commence in February. Additionally, power line installation and road modifications are also scheduled for February with completion expected in eight to 10 weeks. Footings construction and concrete work for the processing facility are expected to be completed soon. All the long lead items are ordered and under construction. See the company’s website for recent pictures.

Qualified person

Terry Coughlan, PGeo, president and chief executive officer of GoGold, is a qualified person as defined by National Instrument 43-101, standards of disclosure for mineral projects, and has reviewed the scientific and technical information in this release.

http://www.gogoldresources.com/index.php/investors/press-releases/2013