Altamira Provides Update Regarding Metalstream Financing Arrangement on Cajueiro Gold Project, Brazil
Altamira Provides Update Regarding
Metalstream Financing Arrangement on
Cajueiro Gold Project, Brazil
Vancouver, British Columbia--(Newsfile Corp. - October 2, 2020) -
Altamira Gold Corp.'s (TSXV:
ALTA) (FSE: T6UP) (OTC Pink: EQTRF),
("
Altamira
" or the "
Company
") wishes to provide an
update regarding the previously announced definitive gold forward purchase agreement (the
"Agreement") with Metalstream Ltd. ("Metalstream") for the development of the Cajueiro gold project in
Brazil.
On 27
th
April 2020, Altamira announced that it had signed a deal with Metalstream for a US$6M gold
forward agreement to finance the construction of a small mine and 1000t/d processing plant at its
Cajueiro gold project located in the state of Mato Grosso in eastern Brazil. The original agreement
provided for two payments including US$1M on 23
rd
June 2020 and US$5M 60 days thereafter.
On 18
th
June 2020, the Company agreed to extend the the time for making that initial payment until 14
th
July with the second payment due date extended until 14
th
September.
On 15
th
July 2020, the Company announced that it had been advised by Metalstream that its financing
was expected to close by the end of July 2020 and that Metalstream's first payment to the Company
would be made shortly thereafter.
Altamira did not formally agree to any further extensions for the
Metalstream payments beyond 14
th
July and 14
th
September.
To date Metalstream has failed to make
any of its contractural payments to Altamira.
Metalstream is currently in breach of its obligations under the Agreement, and, in addition to other
remedies, Altamira may terminate the Agreement.
At this time Altamira is considering other financing
options in the event that it decides to terminate the Agreement.
Michael Bennett, President and CEO stated, "Whilst the failure of Metalstream to close on their
planned financing and meet their obligations with respect to our financing agreement is obviously very
disappointing, we have not yet made a decision to terminate the Agreement.
However, the ability to
terminate the Agreement presents an opportunity for Altamira to explore a number of alternative
unsolicited offers of financing. Management has made significant advances in completing the
necessary engineering and design work at Cajueiro over the last few months and is confident that
these advances will increase the likelihood that the Company will be able to secure funding for this
project."
Overview of Cajueiro Gold Project
The Company's advanced Cajueiro project has NI 43-101 resources of 5.66Mt @ 1.02 g/t gold for a total
of 185,000 oz in the Indicated Resource category and 12.66Mt @ 1.26 g/t gold for a total of 515,000oz
in the Inferred Resource category.
This information is contained in a November 22, 2019 Technical
Report prepared in accordance with NI 43-101 and available at
www.sedar.com
.
A total of 14,000m of drilling (105 holes) and over 4,000m of trenching have been completed to date
within 285ha in the central part of the 28,577ha claim package (or 1% of the Cajueiro project area).
Numerous other gold-in-soil anomalies remain untested.
A production decision at Cajueiro is not based on a feasibility study of mineral reserves demonstrating
economic and technical viability, and as a result there is increased uncertainty and there are multiple
technical and economic risks of failure which are associated with this production decision. These risks,
among others, include areas that are analyzed in more detail in a feasibility study, such as applying
economic analysis to resources and reserves, more detailed metallurgy and a number of specialized
studies in areas such as mining and recovery methods, market analysis, and environmental and
community impacts. In accordance with NI 43-101 and the companion policy to that instrument, Altamira
cannot provide any guidance either in terms of anticipated gold production or net cash flows.
Qualified Person
Guillermo Hughes, P. Geo., a consultant to the Company as well as a Qualified Person as defined by
National Instrument 43-101, supervised the preparation of the technical information in this news release.
Neither the TSX Venture Exchange nor it's 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 news
release.
About Altamira Gold Corp.
The Company is focused on the exploration and development of gold projects within western central
Brazil. The Company holds 9 projects comprising approximately 280,000 hectares, within the prolific
Juruena gold belt which historically produced an estimated 7 to 10Moz of placer gold. The Company's
advanced Cajueiro project has NI 43-101 resources of 5.66Mt @ 1.02 g/t gold for a total of 185,000 oz
in the Indicated Resource category and 12.66Mt @ 1.26 g/t gold for a total of 515,000oz in the Inferred
Resource category.
On Behalf of the Board of Directors,
ALTAMIRA GOLD CORP.
"Michael Bennett"
Michael Bennett
President & CEO
Tel: 604.676.5660
Toll-Free: 1-833-606-6271
www.altamiragold.com
Forward-Looking Statements
Statements in this document which are not purely historical are forward-looking statements, including
any statements regarding beliefs, plans, expectations or intentions regarding the future. It is important
to note that actual outcomes and the Company's actual results could differ materially from those in
such forward-looking statements. Except as required by law, we do not undertake to update these
forward-looking statements.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/65113