News & Press Releases

Batero Disposes of its Shareholdings in CB Gold Inc.

Vancouver, British Columbia, November 2, 2016

Batero Gold Corp. ("Batero" or the "Company") is pleased to announce that it has entered into a binding agreement with Red Eagle Mining Corporation ("Red Eagle"), an arm's length party, pursuant to which the Company will sell to Red Eagle all of its shareholdings of CB Gold Inc. ("CB Gold") with its head office at Suite 2348-666 Burrard Street, Vancouver, BC V6C 2X8, being 83,020,237 common shares of CB Gold (the "CB Shares"), which is approximately 23% of the current issued and outstanding common shares of CB Gold at a deemed price of C$0.085 per CB Share. As consideration for the CB Shares, Red Eagle will issue to Batero 7,428,126 common shares of Red Eagle. The settlement of the transaction is anticipated to occur on November 2, 2016.

Transaction Details

  • CB Gold Shares Sold: 83,020,237 shares (23% of CB Gold)
  • Sale Price: C$0.085 per CB Gold share
  • Total Transaction Value: ~C$7,056,720
  • Consideration: 7,428,126 Red Eagle common shares
  • Buyer: Red Eagle Mining Corporation (arm's length party)
  • Settlement Date: November 2, 2016

📊 Strategic Divestiture

This transaction marks Batero's complete exit from CB Gold Inc., allowing the Company to focus exclusively on advancing the La Cumbre oxide deposit toward a production decision. Batero will receive Red Eagle Mining shares, providing continued exposure to the Colombian mining sector while refocusing capital and resources on its core project.

Background

Batero acquired its CB Gold shareholding through a combination of market purchases and private placement between August and November 2015, ultimately owning 39% of CB Gold. In November 2015, Batero and Red Eagle (which owned 51% of CB Gold) entered into an agreement to proportionally fund the development of the Vetas Gold Project. This transaction represents Batero's strategic decision to exit CB Gold and receive Red Eagle shares in exchange.

About Batero

Batero is a precious and base metals exploration and development company focused on moving the La Cumbre oxide deposit toward a production decision. Once the appropriate level of study has been completed, Batero intends to target the near surface higher grade oxidized gold mineralization at the deposit. Batero is also pursuing opportunities to acquire prospective high-grade, production focused mineral properties in Colombia and Latin America. In pursuing these objectives, Batero plans to leverage its secure treasury position, strong regional relationships, experienced management team, and long-term financial partners. Common shares of the Company trade on the TSXV under the symbol "BAT".

ON BEHALF OF THE BOARD OF BATERO GOLD CORP.

Felipe Ferraro
President, CEO & Director
Batero Gold Corp.

For further information, please contact:

Batero Gold Corp.
Suite 230, 2 Toronto Street
Toronto, Ontario M5C 2B5
Tel: 604.568.6378
Email: info@baterogold.com

Forward-Looking Information

This news release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian securities laws. Forward-looking information and statements include, but are not limited to, statements with respect to Batero's planned exploration and development activities at the La Cumbre oxide deposit, the future interpretation of studies pertaining to gold mineralization at the La Cumbre oxide deposit, and the Company's intentions to acquire mineral properties in Colombia and Latin America.

Although Batero believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.

Forward-looking information and statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking information or statements. Such factors include, but are not limited to, risks relating to property interests, the global economic climate, metal prices, dilution, environmental risks, and non-governmental actions.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.