GoGold Announces US$12 million Sale of Santa Gertrudis Royalty
GoGold Announces US$12 million Sale of
Santa Gertrudis Royalty
Trading Symbol: TSX: GGD
Shares Outstanding: 171,776,481
HALIFAX
,
Sept. 5, 2018
/CNW/ -
GoGold Resources Inc.
(TSX: GGD)
("GoGold", "the
Company")
highlights the sale strengthens the Company's cash position to more than
US$20 million
(assuming the Company does not exercise the share option) and no debt. The Company is in a
strong financial position and has positioned itself to be the consolidator of undervalued juniors in
Mexico
.
The Company has signed a definitive agreement with Metalla Royalty and Streaming Ltd ("Metalla")
for the sale of its 2% royalty on the
Santa Gertrudis
project for cash consideration of
US$12 million
.
The Company has a share option to elect to take
US$6M
of the purchase price in Metalla common
shares at a deemed price of
C$0.78
per Metalla common share.
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 which the Company
purchased in 2014. As part of the royalty agreement with Agnico, Agnico has the right of first
refusal to match the offer from Metalla. Agnico will be given notice of the sale and has 45 days to
determine whether they will exercise their right to match.
Subject to satisfaction of the conditions to closing, the sale of the royalty is expected to occur in the
second half of Q4 2018.
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. Headquartered in
Halifax, NS
, GoGold
is building a portfolio of low cost, high margin projects. 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/September2018/05/c4203.html
%SEDAR: 00029249E
For further information:
Steve Low, Corporate Development, GoGold Resources, T: 416 855
0435, E: [email protected]
CO: GoGold Resources Inc.
CNW 08:30e 05-SEP-18