Golden Independence Amends Terms of Independence Option
Golden Independence Amends Terms of
Independence Option
Vancouver, British Columbia--(Newsfile Corp. - January 25, 2021) - Golden Independence Mining Corp.
(CSE: IGLD) (OTCQB: GIDMF) (FSE: 6NN) (the "
Company
" or "
IGLD
") is pleased to announce that it
has amended the terms of its option to acquire up to a 75% interest in the Independence Gold Property
(the "
Independence
Property
").
Revised Option Terms
The Independence Property is currently owned by the Independence Gold-Silver Mines Inc. (the
"
Underlying Owner
"), with Americas Gold Exploration Inc. ("
AGEI
") having an option to acquire 100%
of the Independence Property pursuant to an agreement between the Underlying Owner and AGEI (the
"
Underlying Option Agreement
"), subject to a 2% net smelter return reserved by the Underlying
Owner. Under the terms of the Option Agreement between the Company and AGEI (the "
IGLD-AGEI
Option Agreement
"), IGLD has the right to fulfill AGEI's obligations under the Underlying Option
Agreement in order to, subject to fulfilling the expenditure requirements in the IGLD-AGEI Option
Agreement, earn an initial 51% interest in the Independence Property.
Under the original terms of the Underlying Option Agreement and the IGLD-AGEI Option Agreement,
IGLD was required to make a US$4,000,000 cash payment on or before December 31, 2021 to AGEI,
which, in turn AGEI, was required to make to the Underlying Owner on or before December 31, 2021.
Pursuant to an amending agreement signed amongst the Underlying Owner, AGEI and IGLD (the
"
Amending Agreement
") this requirement has been revised to require a cash payment of
US$1,700,000 and a payment of 4,900,000 common shares of IGLD ("
IGLD Shares
") to the Underlying
Owner on or before January 29,
2021. In connection with the Amending Agreement, the Company also
agreed to pay a consulting fee of US$50,000 in cash and issue 122,500 IGLD Shares.
All IGLD Shares
issued pursuant to the Amending Agreement will be subject to a statutory four-month hold period
restriction in Canada and their issuance remains subject to the approval of the Canadian Securities
Exchange.
The Company's remaining obligations to earn an initial 51% interest in the Independence Project is to
incur US$1,750,000 in work expenditures on the project by December 31, 2021.
"We are delighted that the Underlying Owner at the Independence Project has agreed to become
significant shareholder in the Company," commented Golden Independence CEO, Christos Doulis. "Our
ability to execute on this transaction was only possible with the recent early warrant exercise and I wish to
thank our shareholders for their ongoing support."
About Golden Independence Mining Corp.
Golden Independence Mining Corp. is an exploration company currently focused on exploring the
advanced-stage Independence Gold Property located in the Battle Mountain-Cortez Trend, Nevada and
the Champ precious metal property near Castlegar, British Columbia. The Independence Gold Property
benefits from over US$25 million in past exploration, including over 200 holes drilled, and is located
adjacent to Nevada Gold Mines' Phoenix-Fortitude mining operations in the Battle Mountain-Cortez trend
of Nevada.
FOR FURTHER INFORMATION PLEASE CONTACT:
Christos Doulis, Chief Executive Officer
Telephone: 1.647.924.1083 Email:
Forward Looking Information
This press release contains forward-looking information (within the meaning of applicable Canadian
securities legislation) that involves various risks and uncertainties regarding future events. Such forward-
looking information includes statements based on current expectations involving a number of risks and
uncertainties and such forward-looking statements are not guarantees of future performance of the
Company, and include, without limitation, statements regarding completion of the transactions
contemplated by the Amending Agreement, statements relating to plans for development, and the
magnitude and quality, of the Independence Property. There are numerous risks and uncertainties that
could cause actual results and the Company's plans and objectives to differ materially from those
expressed in the forward-looking information in this news release, including without limitation, the
following risks and uncertainties: (i) the risk that the Canadian Securities Exchange will not accept the
terms of the Amending Agreement and the issuance of the IGLD Shares; (ii) risks inherent in the mining
industry; (iii) regulatory and environmental risks; (iv) results of exploration activities and development of
mineral properties; (v) risks relating to the estimation of mineral resources; (vi) stock market volatility and
capital market fluctuations; and (vii) general market and industry conditions. Actual results and future
events could differ materially from those anticipated in such information. This forward-looking information
is based on estimates and opinions of management on the date hereof and is expressly qualified by this
notice. Risks and uncertainties about the Company's business are more fully discussed in the
Company's disclosure materials filed with the securities regulatory authorities in Canada at
www.sedar.com
. The Company assumes no obligation to update any forward-looking information or to
update the reasons why actual results could differ from such information unless required by applicable
law.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/72703