Caldas Gold Announces Completion of Juby Acquisition
July 02 2020 - 7:02PM
Caldas Gold Corp. (TSX-V: CGC; OTCQX: ALLXF) announced today that
it has completed its previously announced acquisition of South
American Resources Corp. (“SARC”), the holder of certain mining
assets in Northeastern Ontario, including a 100% interest in the
Juby Project and a 25% joint venture interest in certain claims
adjoining the Juby Project. The Juby Project is an advanced
exploration-stage gold project located approximately 15 km
west-southwest of the town of Gowganda and 100 km south-southeast
of the Timmins gold camp within the Shining Tree area in the
southern part of the Abitibi greenstone belt. Over 14,000 acres are
controlled through the patented claims of the Juby Project covering
10 km strike length on the mineralized trend. At the time of
closing, SARC also had working capital of approximately US$300,000.
Serafino Iacono, Chairman and CEO of Caldas
Gold, commented “Our immediate focus remains on expanding our
Marmato Project in Colombia. The Juby Project in Ontario adds to
Caldas Gold’s pipeline for future growth in a jurisdiction that
gives us some geographic diversification. The project sits on a 10
km strike length of the west-northwest trending Tyrrell Structural
Zone (the “TSZ”) in the Abitibi greenstone belt with IAMGOLD’s Cote
Gold project and Alamos Gold’s Young-Davidson mine both within 70
km of the project. The Juby Project has excellent access to
infrastructure including to a major highway and a power
transmission line that passes through the property and water is
abundant in the region. The regional geological setting at Juby is
similar to that of the Kirkland Lake and Timmins gold camps and is
largely underexplored. We see potential to infill along the strike
of the TSZ to extend the existing Golden Lake and Juby zones,
testing the higher-grade prospects associated with Big Dome and
Hydro-Creek, and to follow up on other targets and trends
identified in historical work programs. Over the balance of this
year, we will use the working capital in SARC to carry out various
studies to provide context for a drilling program next year. In
light of restrictions related to COVID-19, we will adapt our
interactions accordingly to engage with the First Nations and local
communities to communicate our plans for the project.”
The Acquisition of all of the issued and
outstanding shares of SARC was completed by way of an amalgamation
agreement (the “Amalgamation Agreement”) effecting a three-cornered
amalgamation between Caldas Gold, SARC and 1241868 B.C. Ltd., a
wholly-owned subsidiary of Caldas Gold (the “Transaction”).
Pursuant to the terms of the Amalgamation Agreement, Caldas Gold
issued 20,000,000 common shares of the Company (the “Consideration
Shares”) to current shareholders of SARC and funded SARC’s
acquisition of the Juby Project and adjoining claims. Certain
shareholders of SARC have entered into voluntary lock-up agreements
with Caldas Gold pursuant to which such security holders, holding
approximately 87% of the Consideration Shares, have agreed to
voluntarily lock-up their Consideration Shares for a period of two
years from the closing date of the Transaction. No insiders of the
Company or its parent, Gran Colombia Gold Corp., received any of
the Consideration Shares. With the issuance of the Consideration
Shares, Gran Colombia Gold Corp. now has a 57.5% equity interest in
the issued and outstanding shares of Caldas Gold.
A copy of the Amalgamation Agreement will be
filed by Caldas Gold with the Canadian securities regulators and
will be available for viewing on the Company’s profile on SEDAR at
www.sedar.com. A description of the Amalgamation Agreement will
also be set forth in Caldas Gold’s material change report to be
filed on SEDAR.
About Caldas Gold Corp.
Caldas Gold is a Canadian junior mining company
currently advancing a prefeasibility study for a major expansion
and modernization of its underground mining operations at its
Marmato Project in the Department of Caldas, Colombia with mineral
resources of 2.0 million ounces of gold in the Measured and
Indicated categories and 3.3 million ounces in the Inferred
category. A Preliminary Economic Assessment study (Preliminary
Economic Assessment Report, Marmato Project, Colombia, dated
February 6, 2020 completed by SRK Consulting (U.S.), Inc.) is
available on the Company’s SEDAR profile at www.sedar.com. Caldas
Gold also owns 100% of the Juby Project, an advanced
exploration-stage gold project located within the Shining Tree area
in the southern part of the Abitibi greenstone belt about 100 km
south-southeast of the Timmins gold camp.
Additional information on Caldas Gold can be
found on its website at www.caldasgold.ca and by reviewing its
profile on SEDAR at www.sedar.com.
Cautionary Statement on Forward-Looking
Information:
This news release contains "forward-looking
information", which may include, but is not limited to, statements
with respect to anticipated business plans or strategies. Often,
but not always, forward-looking statements can be identified by the
use of words such as "plans", "expects", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates", or
"believes" or variations (including negative variations) of such
words and phrases, or state that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved. Forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of Caldas Gold to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Factors that could cause actual results to differ
materially from those anticipated in these forward-looking
statements are described under the caption "Risk Factors" in the
Company's Filing Statement dated as of February 19, 2020 which is
available for view on SEDAR at www.sedar.com. Forward-looking
statements contained herein are made as of the date of this press
release and Caldas Gold disclaims, other than as required by law,
any obligation to update any forward-looking statements whether as
a result of new information, results, future events, circumstances,
or if management's estimates or opinions should change, or
otherwise. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, the reader is cautioned not to place undue
reliance on forward-looking statements.
For Further Information,
Contact:Mike DaviesChief Financial Officer(416)
360-4653investorrelations@caldasgold.ca
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