Buckingham Exploration Inc. (the “Company” or “Buckingham”) (OTCBB:BUKX) announces that the Company is in advanced negotiations to acquire a gold exploration project in Indonesia. The Company has completed initial due diligence on the project and is also investigating the potential acquisition of a near-term coal producing asset in a nearby region. In addition, the Company has commenced discussions with a reputable in-country mining services company to assist in the exploration and development of mineral properties in Indonesia, should the Company decide to proceed and enter into formal definitive agreements to acquire the properties. The acquisition of the gold project is subject to, among other things, the completion of legal, technical and accounting due diligence to the Company’s satisfaction. The negotiations also contemplate that any resulting transaction will be subject to the Company successfully raising sufficient capital to acquire and commence work on the project.
The Gold Project
The gold project is located in Sulawesi, Indonesia and covers nearly 14,000 hectares. The project area is dominated by argillic alteration which is typical of high grade, epithermal gold deposits. The geological setting is similar to that of large, low cost gold producers in the region. Numerous artisanal miners have been operating in the area extracting gold from hydrothermal vein type mineralisation.
Artisanal miner’s processing plant on the gold project. High grade gold concentrate is produced by physical separation methods from ore extracted by hand.
Mining Plus Alliance
As announced on January 13, 2012, the Company entered a strategic alliance with Mining Plus Pty Ltd (“Mining Plus”), a leading firm of mining and geoscience consultants, to assist in the identification, assessment and development of projects and this has resulted in the Company being able to quickly assess the potential of this project in Indonesia. The Company expects the alliance with Mining Plus to lead to other potential opportunities in line with the Company’s strategy.
Via the strategic alliance with Mining Plus, the Company has ready access to over 50 seasoned mining industry professionals to assist in the potential development of projects with the emphasis on creating early cash flow to enable the Company to consider other corporate opportunities.
Said Simon Eley, President of Buckingham, “These are very exciting times for Buckingham and an important step in the evolution of the Company. The Company is already experiencing benefits from the alliance with Mining Plus in relation to the identification and assessment of this gold project in a promising regional setting. We are also very pleased to have identified an in-country partner to work with Mining Plus to assist the Company to realise the potential of the project. The technical due diligence process has already commenced and the Company is engaging appropriate legal and accounting services to attempt to ensure a smooth acquisition process. We are also continuing discussions in relation to other assets in Indonesia and elsewhere that present near term cash-flow opportunities and will issue updates as discussions continue.”
About Buckingham Exploration Inc.:
Buckingham Exploration is an exploration stage company whose principal business is the acquisition and exploration of mineral resources. Please visit Buckingham’s website at www.buckingham.com to view updated information with regards to the Company’s activities and to subscribe to receive news releases automatically by email.
This press release may contain forward-looking statements that involve risks and uncertainties. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology including “could”, “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “potential” and the negative of these terms or other comparable terminology. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested in this report. Except as required by applicable law, we do not intend to update any of the forward-looking statements so as to conform these statements to actual results. Investors should refer to the risks disclosed in the Company’s reports filed from time to time with the Securities and Exchange Commission and available at www.sec.gov.
For further information, please contact Robin Relph, at +1-604-737-0203 or Simon Eley at +61 439 993 146.