Buffalo Arranges Convertible Debt Financing With Longview Capital
VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 27, 2008) - Brian
McEwen, President and CEO of Buffalo Gold Ltd. (TSX VENTURE:
BUF)(OTCBB: BYBUF)(FRANKFURT: B4K), announces that Buffalo has
secured short-term financing through a convertible loan of CAD$1
million from Longview Capital Partners Incorporated (TSX: LV). This
loan will provide Buffalo with funds to continue several critical
steps to advance its Furtei operation in Sardinia:
- Completion of a NI 43-101 technical report and resource update
- Completion of underground mine plan and development scenario
- Exploration, infill and metallurgical drill programs
Buffalo has recently made its first shipment of gold and copper
concentrate for sale to MRI Trading Ag per the contract announced in
February (see Buffalo News Release from February 18th 2008) but the
Company will not see significant revenue from the concentrate sales
until at least the end of April.
The CAD$1 million convertible loan has an annual interest rate of 8%
and a term of six months. The loan is convertible at Longview's
option into Buffalo units at $0.50 per unit with each unit comprising
one common share and one share purchase warrant exercisable at $0.60
for a term of six months. Buffalo may demand that Longview convert
the loan if the loan is still outstanding after four months. Buffalo
will pay Longview a bonus of 20%, with payment being made in Buffalo
common shares. The loan will be secured by part of Buffalo's holding
of Kinbauri Gold Corp. shares with a market value of $2.5 million.
Longview is a shareholder of Buffalo and has a director in common
with Buffalo. The loan is subject to TSX Venture Exchange approval.
The Company further announces that James Walchuck has resigned from
Buffalo's Board of Directors due to other work commitments. The Board
wishes to thank Jim for his contributions over the years and wishes
him luck in all future endeavours.
On behalf of the Board of Directors of BUFFALO GOLD LTD.
Brian McEwen, President and CEO
This press release contains certain forward-looking statements, which
are based on the opinions and estimates of management at the date the
statements are made, and are subject to a variety of risks and
uncertainties and other factors that could cause actual events or
results to differ materially from those projected. Buffalo undertakes
no obligation to update forward-looking statements if circumstances
or management's estimates or opinions should change. The reader is
cautioned not to place undue reliance on forward-looking statements.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the accuracy of this press release.
Buffalo Gold Ltd.
(604) 685-5492 or Toll Free: 1-888-685-5492
(604) 685-2536 (FAX)