VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 17, 2011) - Cortez Gold Corp. (TSX VENTURE:CUT) ("Cortez" or the "Company") announces that it has accepted a letter of intent ("LOI") from Banco Base, S.A. Institución de Banca Múltiple ("BASE") for an operating Line of Credit in the amount of US$2.5 million (the "Credit Facility") for the mineral processing business being acquired by Cortez known as "Altiplano Goldsilver" (see press release dated February 17, 2011).

Altiplano Goldsilver holds the title to 20 hectares of land in Matehuala, S.L.P., Mexico on which the processing plant is situated. Designed to process lead and copper concentrates with high content of gold and silver, Altiplano's plant will offer a lower processing charge to the numerous small miners in the surrounding area as well as the medium size size producers whose only current option is to sell their concentrates to smelters at a high processing cost.

The Credit Facility is subject to certain conditions, including a definitive credit agreement to be executed by BASE and Cortez once the conditions precedent have been met.

BASE is a financial institution headquartered in Mexico that has positioned itself as a specialized full brokerage dealer in the NAFTA region, satisfying the foreign exchange needs of its clients with a wide range of business relationships with banks internationally and with global exchange markets.

"We've established a special relationship with BASE that we anticipate will grow as our business progresses," said Robert Eadie, President and CEO of Cortez. "We have demonstrated to them that our focus is firmly planted in Mexico and we are committed to making our relationships work with our Mexican partners."

ON BEHALF OF THE BOARD of Cortez Gold Corp.

Robert Eadie, President & Chief Executive Officer

Contributing Sources

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