Ovoca Bio Regulatory News (OVB)

8 Jun 2007 07:01

Ovoca Gold PLC08 June 2007 Ovoca Gold plc ("Ovoca Gold" or the "Company") Ovoca Gold Joint Venture Agreement with BKG Exploration on the Klippen Gold Project in Sweden Ovoca Gold Plc (AIM: OVG; IEX: OVX) is pleased to announce a Joint VentureAgreement with BKG Exploration Limited ("BKG") to explore the Swedish licenceareas held by Ovoca's subsidiary, Klippen Guld AB ("Klippen"), which number atotal of 13 licences and cover an area of 25,387 hectares. The agreement allows BKG to earn a 50% interest in Klippen in return for meetingthe operational and management expenses of the company and carrying out anexploration programme which includes drilling a minimum of 2,000 meters, withineighteen months. BKG will also meet all the licence renewal, tax andexploration obligations during that period. On completion of the drillingprogramme, BKG will have an option to purchase the balance of Ovoca's shares inKlippen in return for meeting all the ongoing exploration, development andmanagement costs of Klippen and providing Ovoca with a 1.5% Net Smelter Return. Leonid Skoptsov, CEO of Ovoca, commented "Klippen is an exciting greenfieldsexploration project. With Ovoca currently focussing manpower and funding ondeveloping the Goltsovoye silver deposit in Russia, we are happy to partner withBKG, whose wealth of experience and success in the mineral industry will provideKlippen with the momentum to continue its development. " Ovoca acquired Klippen from Minmet plc in 2003 and has been exploring in theVasterbotten "Gold Line" district since then. BKG Exploration is a private exploration company established to acquire mineraland petroleum exploration projects in Scandinavia, Africa and Mongolia. Ovoca Gold Plc is an international exploration company quoted in London (OVG.L) and Dublin (OVX.IR), exploring for precious and base metals in Russia, Sweden and Ireland For further information please visit www.ovocagold.com or contact: Simon Beardsmore, Commercial Manager - Ovoca John O'Connor, CFO - Ovoca Gold PlcGold Plc Tel: +44 (0)207 397 8152Tel: +44 (0)207 397 8159 Email: john.oconnor@ovocagold.comEmail: simon.beardsmore@ovocagold.com John Frain - Davy Nick Bias / Alex Buck - BuckBias (UK PR) Tel: +353 (0)1 679 6363 Tel: +44 (0)7887 920 530 / +44 (0)7932 740 452 Email: john.frain@davy.ie Email: nick@buckbias.com / alex@buckbias.com This information is provided by RNS The company news service from the London Stock Exchange