Sailfish to Monetize a Portion of the NSR on the Tocantinzinho Gold Project for US$9,000,000
Sailfish to Monetize a Portion of the NSR
on the Tocantinzinho Gold Project for
US$9,000,000
TORTOLA, British Virgin Islands, March 15, 2021 /CNW/ - Sailfish
Royalty Corp. (TSXV: FISH) (OTCQX: SROYF) (the "Company" or
"Sailfish") is pleased to announce that it has entered into a royalty
transfer agreement with Metalla Royalty & Streaming Ltd. ("Metalla")
to transfer a 0.75% post-buy-down interest of the Company's up to
3.5% net smelter return royalty ("NSR") held on the Tocantinzinho
gold project ("Tocantinzinho") located in northern Brazil (the
"Transaction") for total consideration of US$9 million in cash (the
"Purchase Consideration").
Cesar Gonzalez, Chief Executive Officer of Sailfish states that, "the
monetization of a portion of the NSR on Tocantinzinho provides the
funds necessary to execute on key strategic initiatives at
Sailfish. Specifically, the net proceeds will be used to repay all debt
outstanding, fund the purchase of approximately 1.1 million common
shares remaining under the normal course issuer bid and provide the
seed capital to successfully spinout the Gavilanes silver property into
a separate publicly traded company."
The Transaction is expected to close on or before March 19, 2021
("Closing Date"). The Purchase Consideration will be paid to Sailfish
as follows: US$6 million on the Closing Date and US$3 million within
60 days from the Closing Date.
About Sailfish
Sailfish is a precious metals royalty and streaming company. Within
Sailfish's portfolio are three main assets on advanced stage projects
in the Americas: a gold stream equivalent to a 3% NSR on the San
Albino gold project (~3.5 sq. km) and a 2% NSR on the rest of the
area (~134.5 sq. km) surrounding San Albino in northern Nicaragua;
an up to 3.5% NSR (2.75% NSR post-Transaction) on the
Tocantinzinho gold project in the prolific Tapajos district of northern
Brazil; and an up to 3% NSR on the multi-million ounce Spring Valley
gold project in Pershing County, Nevada.
Sailfish is listed on the TSX Venture Exchange under the symbol
"FISH" and on the OTCQX under the symbol "SROYF". Please visit
the Company's website at www.sailfishroyalty.com for additional
information.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as the term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this
release.
Cautionary statement regarding forward–looking information
Certain disclosures in this release constitute "forward-looking
information" within the meaning of Canadian securities legislation.
Forward-looking statements are statements that are not historical facts
and are generally, but not always, identified by words such as the
following: expects, plans, anticipates, believes, intends, estimates,
projects, assumes, potential and similar expressions. Forward-looking
statements also include reference to events or conditions that will,
would, may, could or should occur, including, without limitation,
statements regarding the Company's expectation that the San Albino
gold project is nearing production, the repayment of the Company's
indebtedness, the continuance of the Company's normal course issuer
bid and the Company's plans for the spinout or monetization of the
Gavilanes silver property. In making the forward-looking statements in
this news release, the Company has applied certain factors and
assumptions that the Company believes are reasonable, including that
the San Albino gold project is nearing production, the repayment by
the Company of its indebtedness, the continuance of the Company's
normal course issuer bid and regarding the Company's plans for the
spinout or monetization of the Gavilanes silver property. However, the
forward-looking statements in this news release are subject to
numerous risks, uncertainties and other factors that may cause future
results to differ materially from those expressed or implied in such
forward-looking statements, including without limitation: that the San
Albino gold project is not nearing production or will not achieve
production at all, that the Company will not repay all of its
indebtedness or continue to fund its normal course issuer bid from the
proceeds of the Transaction and that the spinout or monetization of
the Gavilanes silver property will not happen. There can be no
assurance that such statements will prove to be accurate, as actual
results and future events could differ materially from those anticipated
in such statements. Accordingly, readers should not place undue
reliance on forward-looking statements and forward-looking
information. Readers are cautioned that reliance on such information
may not be appropriate for other purposes. The Company does not
undertake to update any forward-looking statement, forward-looking
information or financial out-look that are incorporated by reference
herein, except in accordance with applicable securities laws.
SOURCE Sailfish Royalty Corp.
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%SEDAR: 00044073E
For further information: Cesar Gonzalez, CEO, tel. 203-862-7009;
or Akiba Leisman, Executive Chairman of the Board, tel. 203-862-
7059.
CO: Sailfish Royalty Corp.
CNW 16:10e 15-MAR-21