BCGold Corp. Announces 100% Ownership of High-Grade Engineer Gold Mine, Mill Purchase and Corporate Restructuring

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 25, 2012) - BCGold Corp. (or the "Company") (TSX VENTURE:BCG)(PINKSHEETS:BCGOF) is pleased to announce that it has vested its final 25% interest and has now acquired 100% ownership of the Engineer Mine property from Engineer Mining Corp. ("EMC"). BCGold Corp. has notified EMC that it has fulfilled all obligations under the option agreement dated January 16, 2007, including all subsequent amendments.

Immediately following the acquisition, BCGold Corp. entered into a letter agreement with EMC to purchase the following items, subject to TSX Venture Exchange approval, for total consideration of $300,000 payable to EMC no later than May 15, 2013:

• the fully permitted 30-tonne-per-day gravity separation mill, a 931 Caterpillar crawler loader, a 10-tonne dump truck, and ancillary equipment at Engineer Mine
• the 30% Net Profits Interest Royalty on a high-grade gold shoot on the Double Decker Vein between mine levels five and eight
• the option to purchase the Engineer Mine property surface rights in three equal annual payments over a three-year period commencing April 16, 2016, at a fair market value of no more than $500,000 (this item is an amendment to a previous agreement with EMC)

"This agreement consolidates the Company's ownership of mineral rights, royalties and infrastructure at the Engineer Mine property. The Engineer Mine has excellent exploration upside and near-term production potential, with more than 5,500 m of underground development to provide access to seven high-grade gold veins and two potential bulk tonnage mineralized shear zones," states Brian P. Fowler, P.Geo., President and CEO of BCGold Corp. "Engineer Mine remains our primary focus and we are committed to maximizing shareholder value by continuing to advance the property through sustainable and deliberate exploration and development. We believe we can continue to selectively bulk sample high-grade vein material and produce a marketable gold-rich concentrate while we continue to explore for bulk tonnage, shear zone gold deposits."

 

Common Share Consolidation

In order to obtain adequate financing to further explore and develop the Company's projects, including the Engineer Mine property, BCGold Corp.'s directors deem it necessary to consolidate the Company's share capital. BCGold Corp. was unsuccessful in filling a $500,000 private placement (announced July 10, 2012) priced at the practical minimum share price of $.05 per Unit in a prevailing weak venture capital market. The Company's directors believe that locking up 100% ownership of the Engineer Mine property, mill, and royalties makes for a compelling and financeable investment opportunity, even more so when coupled with the tighter share structure (and anticipated multiple in share price) that results from a consolidation of share capital.

BCGold Corp. is convening an Extraordinary Meeting on October 30^th, 2012, at 11:00 am at its corporate office, where shareholders will be asked by means of an Ordinary Resolution to approve a Consolidation of the Company's issued and outstanding common shares at a ratio of up to ten (10) to one (1).

If the Consolidation is approved, there will be more room for the share price to drop. Share holders will also reduces their chance of making 10x the amount that they were hoping to make. As of now, BCgold seems to on the downturn due to this announcement.

You are reminded that you are responsible for your own due diligence. We share in neither your profit nor your losses.