Scorpio Gold Announces Forbearance Agreement
TSX -V: SGN
206-595 Howe St.
Vancouver, British Columbia
Canada, V6C 2T5
Tel: (604) 678-9639
www.s cor piog old .com
News Release No. 260
Scorpio Gold Announces Forbearance Agreement
Vancouver, August 13, 2018 - Scorpio Gold Corporati on (“Scorpio Gold” or the “Company”) (TSX-V:
SGN) announces it has entered into a forbearance ag reement dated August 13, 2018 (the “Forbearance
Agreement”) among the Company, its subsidiaries and Waterton Precious Metals Fund II Cayman, LP (the
“Lender”), which is advised by Waterton Global Reso urce Management, Inc., in connection with the
repayment of a loan advanced from the Lender to Scorpio Gold in the principal amount of US$6,000,000
(the “Loan”), pursuant to the terms of a senior sec ured credit agreement dated August 14, 2015 (as
amended, modified, supplemented or restated from ti me to time, the “Credit Agreement”) among the
Company, its subsidiaries and the Lender. Under the terms of the Forbearance Agreement, the Lender has
agreed to not exercise its rights and remedies in c onnection with the Loan and extend the maturity dat e
thereof from August 13, 2018 to October 15, 2018, subject to the occurrence of default under, and Scorpio
Gold’s and its subsidiairies’ compliance with, the Forbearance Agreement and Credit Agreement.
The Company will use the period until October 15, 2 018 to complete its review of potential strategic
alternatives, including possible sale transactions, or capital investments and financing alternatives, in an
effort to fully repay the Loan.
About Scorpio Gold Corporation
Scorpio Gold holds a 70% interest in the producing Mineral Ridge gold mining operation located in
Esmeralda County, Nevada with joint venture partner Elevon, LLC (30%). Mineral Ridge is a conventional
open pit mining and heap leach operation. Mining at Mineral Ridge was suspended in November 2017;
however, the Company continues to generate limited revenues from residual but diminishing recoveries
from the leach pads. Scorpio Gold also holds a 100% interest in the advanced exploration-stage Goldwedge
property in Manhattan, Nevada with a fully permitted underground mine and 400 ton per day mill facility.
The Goldwedge mill facility has been placed on a ca re and maintenance basis and can be restarted
immediately when needed.
ON BEHALF OF THE BOARD
SCORPIO GOLD CORPORATION
Brian Lock,
Interim CEO
For further information contact:
Chris Zerga, President
Tel: (604) 678-9639
Email: [email protected]
Website: www.scorpiogold.com
Neither TSX Venture Exchange nor its Regulation Ser vices Provider (as that term is defined in the poli cies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The Company relies on litigation protection for "fo rward-looking" statements. This news release contai ns forward-looking
statements that are based on the Company’s current expectations and estimates. Forward-looking stateme nts are frequently
characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “suggest”, “indicate” and
other similar words or statements that certain even ts or conditions “may” or “will” occur, and include , without limitation,
statements regarding the Company’s repayment of the Loan by October 15, 2018, the Company’s compliance with the terms of the
Forbearance Agreement and Credit Agreement, the Lender’s forbearance of its rights and remedies in connection with the Loan and
the potential results of the Company’s review of potential strategic alternatives. Such forward-looking statements involve known
and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or
anticipated events or results implied or expressed in such forward-looking statements, including risks relating to operation of a gold
mine, including the availability of cash flows or financing to meet the Company’s ongoing financial obligations; the inability of the
Company to re-finance its long-term debt obligation s; unanticipated changes in the mineral content of materials being mined;
unanticipated changes in recovery rates; changes in project parameters; failure of equipment or processes to operate as anticipated;
the failure of contracted parties to perform; availability of skilled labour and the impact of labour disputes; obtaining the required
permits to expand and extend mining activities; del ays in obtaining governmental approvals; changes in metals prices;
unanticipated changes in key management personnel; changes in general economic conditions; other risks of the mining industry
and those risk factors outlined in the Company’s Management Discussion and Analysis as filed on SEDAR. Any forward-looking
statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company
disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or
results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should
not be put on such statements due to the inherent uncertainty thereof.