Vancouver, British Columbia - Bell Copper Corporation ("Bell" or the "Company") (TSX-V: BCU) announces that it has entered into a loan agreement ("Loan") with Desert Fox Minerals Co. (the "Lender"). The Loan provides credit to Bell of CDN $150,000 and bears interest at 12% per annum. The Loan will be due in twelve months and is secured against the Company's Kabba mineral properties. An origination fee of 500,000 shares of the Company's stock will be paid to the Lender upon approval of the TSX Venture Exchange. Should the loan not be repaid in a timely fashion, the Lender has the option of acquiring the Kabba properties for CDN $500,000 less the loan principal amount and accrued interest. The Company intends to use the proceeds for general working capital and claim maintenance fees during the upcoming K-11 drill program on the Company's Kabba porphyry copper project in Arizona. The Company expects to repay the loan using future private placement financings.
The Company's Kabba porphyry copper-molybdenum project lies between Freeport's Bagdad mine and Origin Mining's Mineral Park mine in northwestern Arizona, a state that has produced ten percent of the world's copper. The Kabba porphyry was predicted to be present beneath the Company's claims based on a fault model linking it with an outcropping porphyry root zone 8 kilometers to the west. Three prior drillholes have intersected the margins of the faulted porphyry system, where they encountered diatreme breccia and porphyry dike swarms carrying disseminated sulfide minerals typical of porphyry copper deposits. A key drillhole, K-11, will test the midpoint between the prior holes in an area of previously identified electrical geophysical anomalies.
The Company intends to complete the key test of the hypothetical copper-rich core of the Kabba porphyry target in the second quarter of 2015. Godbe Drilling LLC of Montrose, Colorado has been selected to complete the drilling. Godbe will mobilize the drill from their Willcox, Arizona field office. Permitting of the proposed K-11 drill site has already received approval from the Arizona State Land Department, subject to completion of a native plant survey and payment of a "stumpage fee" for vegetation removed during construction of the drill site. Finalization of permitting is estimated to take 60 days.
The technical content of this release has been reviewed and approved by Timothy Marsh, PhD, PEng., the Company's CEO and President. No mineral resource has yet been identified on the Kabba Project. There is no certainty that the present exploration effort will result in the identification of a mineral resource or that any mineral resource that might be discovered will prove to be economically recoverable.
"The new loan facility gives us the funds to keep the Company functioning without inflicting unnecessary dilution upon our extraordinarily patient shareholders. I expect that any perceived value that Bell unlocks in the completion of K-11 at Kabba will allow us to repay the loan in a much less dilutive market and to finance a step-out drilling program."
On behalf of the Board of Directors of Bell Copper Corporation
Timothy Marsh, President, CEO & Director
For further information please contact the Company
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.