Exhibit 99.1
PRESS RELEASE
Capital Gold Mandates Standard Bank London as Exclusive Arranger of Project Finance Facility for the El Chanate Gold Project
NEW YORK, February 3, 2005 - Capital Gold Corporation (OTC/BB:CGLD) is pleased to announce that it has mandated Standard Bank London Limited as the exclusive arranger of a project finance facility of up to US$10 million for the development of it’s El Chanate open-pit gold mining project in Sonora, Mexico.
In making the announcement today Gifford Dieterle, Chairman of Capital Gold Corp., said the engagement of Standard Bank, a leading Emerging Market Bank providing resource banking expertise, is a key step in bringing the El Chanate project into production. “We are delighted to be working with Standard Bank and look forward to moving the El Chanate project forward,” he said.
The basis for the funding and development of the El Chanate open-pit gold mining project is included in the project feasibility study completed by M3 Engineering, Tucson, Arizona. The Executive Summary from the feasibility study is available on the Capital Gold website.
Standard Bank is a participant in international project financing, forfaiting and trade finance and has considerable expertise throughout the world. It trades in precious and base metals and energy, and is especially active in mining finance and advisory services.
A financing commitment is subject to satisfactory completion of due diligence, approval from Standard Bank’s credit committee and the execution of definitive documentation.
Further information about Capital Gold and the El Chanate project is available on the Company’s website,www.capitalgoldcorp.com
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Statements in this press release, other than statements of historical information, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from those projected or suggested due to certain risks and uncertainties, some of which are described below. Such forward-looking statements include comments regarding the establishment and estimates of mineral reserves [and non-reserve mineralized material], future increases in mineral reserves, the recovery of any mineral reserves, construction cost estimates, construction completion dates, equipment requirements and costs, production, production commencement dates, grade, processing capacity, potential mine life, results of feasibility studies, development, costs and expenditures. Factors that could cause actual results to differ materially include timing of and unexpected events during construction, expansion and start-up; variations in ore grade, tons mined, crushed or milled; delay or failure to receive board or government approvals; timing and availability of external financing on acceptable terms for equipment, construction, working capital and other purposes; the availability of adequate power and water supplies; the availability of adequate mining equipment; technical, permitting, mining or processing issues, and fluctuations in gold price and costs. There can be no assurance that future developments affecting the Company will be those anticipated by management.
The forecasts contained in this press release constitute management’s current estimates, as of the date of this press release, with respect to the matters covered thereby. We expect that these estimates will change as new information is received and that actual results will vary from these estimates, possibly by material amounts. While we may elect to update these estimates at any time, we do not undertake to update any estimate at any particular time or in response to any particular event. Investors and others should not assume that any forecasts in this press release represent management’s estimate as of any date other than the date of this press release. Additional information concerning certain risks and uncertainties that could cause actual, results to differ materially from that projected or suggested is contained in the Company’s filings with the Securities and Exchange Commission (SEC) over the past 12 months, copies of which are available from the SEC or may be obtained upon request from the Company.
Contact:
| Jeff Pritchard, VP-Corporate Relations | Tel: (212) 344-2785 |
Capital Gold Corporation | Fax: (212) 344-4537 |
| Email:investorrelations@leadvillemining.com | |
| Website: | |
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Media Inquiries
| Victor Webb/Madlene Olson | Tel: (212) 684-6601 |
Marston Webb International | Fax: (212) 725-4709 |
| Email:marwebint@cs.com | |
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