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RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR
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HALIFAX, Nov. 2, 2017 /CNW/ - GoGold Resources Inc.
("GoGold" or the "Company") (TSX: GGD) announces that it has
completed its previously announced sale to Agnico Eagle Mines
Limited ("Agnico") of the Santa
Gertrudis gold project (the "Project"), located in
Sonora, Mexico (the
"Transaction").
Pursuant to the Transaction the Company received total cash
consideration of US$80 million (less
a working capital adjustment of US$379,978) and was granted a 2% NSR on the
Project, 50% of which may be repurchased at any time for
US$7.5 million. The Company has
applied the net proceeds of the Transaction to repay in full the
US$46.5 million outstanding under its
existing senior revolving credit facility with the Bank of
Montreal (the "Facility"), to
repay the principal and interest on the US$7.5 million subordinated secured term loan
advanced by Agnico to the Company and for general working capital
purposes. Following the completion of the Transaction the Facility
was terminated.
Brad Langille, President and CEO
of GoGold stated, "We are very pleased to complete this Transaction
with Agnico. We believe GoGold shareholders are well positioned to
benefit from the future potential of Santa Gertrudis through our retained royalty.
After this Transaction GoGold will be debt free with a strong cash
balance which positions the Company well as the Parral Tailings
project ramps up to its full production potential, while also
allowing us to continue to pursue further opportunities."
Advisors and Counsel
BMO Capital Markets acted as financial advisor to GoGold and
Fasken Martineau DuMoulin LLP acted as GoGold's legal advisor.
Davies Ward Phillips & Vineberg
LLP acted as Agnico's legal advisor.
About GoGold Resources
GoGold is a Canadian-based silver and gold producer focused on
operating, developing, exploring and acquiring high quality
projects in Mexico. Headquartered
in Halifax, Nova Scotia, GoGold is
building a portfolio of low cost, high margin projects. For more
information visit www.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 use of proceeds from the amounts received by GoGold in
connection with the Transaction and the 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 and the
accuracy of mineral resource estimates. 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 the 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.
GoGold assumes no obligation to update these forward-looking
statements, except as required by applicable securities
legislation.
SOURCE GoGold Resources Inc.