Amarillo Gold Announces Completion of the Sale of an NSR Royalty to Royal Gold for USD $10.8 Million
July 03 2018 - 7:00AM
Amarillo Gold Corporation (“Amarillo” or the
“Company”) (TSX.V:AGC)
is pleased to
report that it has completed the previously-announced sale of a
perpetual 1.75% Net Smelter Return Royalty (the “Royalty”) on the
Mara Rosa gold project (the “Mara Rosa Project”) to RG Royalties,
LLC, a wholly-owned subsidiary of Royal Gold, Inc. (NASDAQ:RGLD)
(“Royal Gold”), for USD $10.8 million (approximately CAD$14.4
million).
The proceeds of the sale are expected to be used
to repay a portion of the gold-linked credit facility that the
Company entered into on July 31, 2014, and to fund ongoing
exploration and development activities in respect of the Mara Rosa
Project.
Mike Mutchler, President and Chief Executive
Officer of Amarillo, commented: “We are extremely pleased to have
completed the sale of the Royalty. It represents a compelling way
for Amarillo to realize significant cash proceeds that will further
strengthen our balance sheet and help fund the continued
advancement of the Mara Rosa Project.”
ABOUT
AMARILLO
Amarillo is developing an economic, open pit
gold resource at its Mara Rosa Project in the mining friendly
jurisdiction of Goias State in Brazil. An Updated Pre-Feasibility
Study (NI 43-101 technical report) for the Mara Rosa Project was
filed on SEDAR on May 4, 2017. The Mara Rosa Project was awarded
its main (LP) permit which provides the social and environment
permission to mine. Amarillo is progressing toward obtaining an
installation permit (LI). The Posse Deposit at the Mara Rosa
Project contains 540,567 ounces of gold in the Proven category from
9.27MT at 1.81 g/t Au, and 456,968 ounces in the Probable category
from 9.74MT at 1.46 g/t Au, for total Reserves of 997,536 ounces
from 19.01 MT at 1.63 g/t Au. In addition to the Mara Rosa Project,
Amarillo has an advanced exploration project with excellent grades
at Lavras do Sul, Brazil. A Mineral Resource Estimate Study (NI
43-101 technical report) for Lavras do Sul was filed on SEDAR on
October 4, 2010. The Lavras do Sul Project is an advanced
exploration stage property (190 sq. km.) comprising of more than 22
prospects centered on historic gold workings. The initial resource
estimate at the Butia prospect reported 215,000 ounces of gold in
the Indicated category from 6.4 MT at 1.05 g/t Au, and 308,000
ounces of gold in the Inferred category from 12.9 MT at 0.74 g/t Au
using a 0.3 g/t cut-off grade. Both projects have excellent nearby
infrastructure.
Mike Mutchler, the President and Chief Executive
Officer of the Company, is a Qualified Person as defined by NI
43-101 guidelines, and has reviewed and approved the scientific and
technical disclosure in this news release.
ABOUT ROYAL
GOLD
Royal Gold, Inc., together with its
subsidiaries, acquires and manages precious metal streams,
royalties, and similar interests. It focuses on acquiring stream
and royalty interests or to finance projects that are in production
or in development stage in exchange for stream or royalty
interests. As of June 29, 2018, the company owns interests on 192
properties on six continents, including interests on 39 producing
mines and 22 development stage projects.
For further
information, please
contact:
Mike
Mutchler President &
CEO416-294-0736mike.mutchler@amarillogold.com |
or
|
Karen
MateExternal Communications
416-230-6454karen.mate@amarillogold.com |
82 Richmond
St. East Suite 201 Toronto, ON Canada, M5C 1P1Website:
www.amarillogold.com |
|
|
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
FORWARD LOOKING STATEMENTS:
This news release contains Forward Looking
Statements regarding the Company’s current expectations regarding
future events, including with respect to the Company’s business,
operations and condition, management’s objectives, strategies,
beliefs and intentions, and the use of proceeds from the sale of
the Royalty (as contemplated hereby). Various factors may prevent
or delay our plans, including but not limited to, the trading price
of the common shares in the capital of Amarillo, the TSX Venture
Exchange not providing its final approval for the sale of the
Royalty, certain lenders not advancing funds as required,
contractor availability and performance, weather, access, mineral
prices, and success and failure of the exploration and development
carried out at various stages of the program. Permission from the
Government and community is also required to proceed with future
mining production. Readers should review the Company’s ongoing
quarterly and annual filings, as well as any other additional
documentation comprising the Company’s public disclosure record,
for additional information on risks and uncertainties relating to
these forward-looking statements. Readers should also review the
risk factors applicable to junior mining exploration companies
generally to better understand the variety of risks that can affect
the Company. The Company undertakes no obligation to update
publicly or otherwise revise any Forward Looking Statements whether
as a result of new information or future events or otherwise,
except as me be required by law.
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