GoGold Announces closing of the US$12 million Sale of Santa Gertrudis Royalty
GoGold Announces closing of the US$12
million Sale of Santa Gertrudis Royalty
Trading Symbol: TSX: GGD
Shares Outstanding: 171,776,481
HALIFAX
,
Nov. 7, 2018
/CNW/ -
GoGold Resources Inc. (TSX: GGD) ("GoGold", "the
Company")
is pleased to announce the closing of the previously announced (
September 5, 2018
)
sale of the Santa Gertrudis royalty for
US$12 million
to Metalla Royalty and Streaming Ltd
("Metalla").
The Company has elected to take
US$6 million
of the
US$12 million
sale price in common shares of
Metalla at a deemed price of
CAD$0.78
("Share Consideration"). This Share Consideration
represents a total of 10.1 million common shares of Metalla representing 9.9% of Metalla shares
outstanding and will be subject to a 4-month hold period.
Brad Langille
, President and CEO of GoGold commented, "We are very pleased to become a
shareholder of Metalla and immediately realize the value of the royalty and also maintain exposure to
the royalty by holding their equity."
GoGold maintains a very strong balance sheet with a strong cash position and no debt. The
Company is in a strong financial position and seeking opportunities to be the consolidator of
undervalued juniors in
Mexico
.
The Company sold the Santa Gertrudis Project to Agnico Eagle Mines Limited ("Agnico") on
November 2, 2017
for cash consideration of
US$80 million
and was granted a 2% net smelter
royalty on the Santa Gertrudis Project. This is the final step in the monetization of the Santa
Gertrudis Project for total proceeds of
US$92 million
which the Company purchased in 2014 for
US$11 million
.
Advisors and Counsel
PI Financial Corp. acted as financial advisors to GoGold and Fasken's acted as GoGold's legal
advisor.
About GoGold Resources
GoGold Resources (TSX: GGD) is a Canadian-based silver and gold producer focused on
operating, developing, exploring and acquiring high quality projects in Mexico. The Company's Parral
Tailings project produces silver and gold at a low cash cost. For more information visit
gogoldresources.com
.
CAUTIONARY STATEMENT:
The securities described herein have not been, and will not be, registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and
may not be offered or sold within
the United States
or to, or for the benefit of, U.S. persons (as
defined in Regulation S under the U.S. Securities Act) except in compliance with the registration
requirements of the U.S. Securities Act and applicable state securities laws or pursuant to
exemptions therefrom. This release does not constitute an offer to sell or a solicitation of an offer to
buy of any of GoGold's securities in
the United States
.
This news release may contain "forward-looking information" as defined in applicable Canadian
securities legislation. All statements other than statements of historical fact, included in this release,
including, without limitation, statements regarding the Parral tailings project, future operating
margins, future production and processing, and future plans and objectives of GoGold, constitute
forward looking information that involve various risks and uncertainties. Forward-looking information
is based on a number of factors and assumptions which have been used to develop such information
but which may prove to be incorrect, including, but not limited to, assumptions in connection with the
continuance of GoGold and its subsidiaries as a going concern, general economic and market
conditions, mineral prices, the accuracy of mineral resource estimates, and the performance of the
Parral project. There can be no assurance that such information will prove to be accurate and actual
results and future events could differ materially from those anticipated in such forward-looking
information.
Important factors that could cause actual results to differ materially from GoGold's expectations
include exploration and development risks associated with GoGold's projects, the failure to establish
estimated mineral resources or mineral reserves, volatility of commodity prices, variations of
recovery rates, and global economic conditions. For additional information with respect to risk
factors applicable to GoGold, reference should be made to GoGold's continuous disclosure
materials filed from time to time with securities regulators, including, but not limited to, GoGold's
Annual Information Form. The forward-looking information contained in this release is made as of the
date of this release.
SOURCE
GoGold Resources Inc.
View original content:
http://www.newswire.ca/en/releases/archive/November2018/07/c1476.html
%SEDAR: 00029249E
For further information:
Steve Low, Corporate Development, GoGold Resources, T: 416 855
0435, E: [email protected]
CO: GoGold Resources Inc.
CNW 17:00e 07-NOV-18