Golden Predator To Sell 100% of the 3 Aces Project to Seabridge Gold For $4MM+ and Royalty and Contingent Payments
March 30 2020 - 7:30AM
Golden Predator Mining Corp. (TSX.V:GPY,
OTCQX:NTGSF) (the “
Company”) announced
today that it has entered into an agreement with Seabridge Gold
Corp. for the sale of a 100% interest in the 3 Aces gold project
located in Canada’s Yukon, for 300,000 Seabridge common shares,
contingent future cash payments totaling $2.25 million and a 0.5%
net smelter return royalty on the entire 3 Aces gold project.
The arrangement includes an immediate cash payment to Golden
Predator of $263,000 for reimbursement of previously incurred
expenses. Closing of the transaction is subject to completion
of due diligence by Seabridge and the approval of the applicable
stock exchanges.
“This non-dilutive transaction strengthens our
balance sheet and allows the Company to focus entirely on our
advanced permitted Brewery Creek Mine. In the past
year, we have seen an impressive growth in the gold resource at
Brewery Creek as recently defined in a 2019 NI 43-101 report which
incorporated drilling data through 2014. This impressive growth
trend has continued with the successful 2019 drill program of 177
step-out and infill holes which expanded gold mineralization down
dip and along strike, thereby connecting a number of resource areas
originally thought to be separate and discrete into one much larger
resource with further expansion potential. A new resource
estimate incorporating more than 212 holes not included in the 2019
resource is underway along with a feasibility study for
reprocessing the existing heap leach material mined and partially
processed by Viceroy, the original operator,” said Janet
Lee-Sheriff, Golden Predator’s Chief Executive Officer.
Janet Lee-Sheriff added, “In addition to being
able to focus entirely on returning our Brewery Creek Mine to an
early production decision, we look forward to being a shareholder
in Seabridge Gold, whose KSM asset contains NI 43-101 Measured and
Indicated resources of 49.7 million ounces of gold plus 13.9
billion pounds of copper (at 0.52 grams per tonne gold and 0.21%
copper) and an additional 56.3 million ounces of gold plus 32.0
billion pounds of copper (at 0.38 grams per tonne gold and 0.32%
copper) in the Inferred category, making it one of the world’s
largest undeveloped gold/copper resources. In addition,
Seabridge owns the Courageous Lake deposit with Measured and
Indicated Resources of 8 million ounces of gold grading over 2 g/t
plus an additional 3.9 million ounces of gold in the Inferred
category, also above 2 g/t gold. With this world class gold
endowment in a rising gold market, we believe the shares have
excellent upside potential. Our involvement with 3 Aces will
continue as a royalty holder and we look forward to assisting
Seabridge in the transition to their team.”
In addition to the Seabridge shares and grant of
royalty, the acquisition agreement provides for additional payments
to Golden Predator of $1 million upon confirmation of a mineral
resource of 2.5 million ounces of gold on the 3 Aces property, and
a further $1.25 million upon confirmation of an aggregate mineral
resource of 5 million ounces of gold.
The agreement excludes Golden Predator’s 50 tpd
cyanide-free test processing plant, its SRU (Secondary Recovery
Unit), stockpiles of unprocessed gold-bearing material and the
proprietary research into cyanide-free gold extraction now being
developed by Golden Predator in partnership with Group 11
Technologies Corp. Golden Predator also retains the Yukon Mint
Corp. whose award-winning coinage uses gold recovered from test
mining at 3 Aces.
About Seabridge Gold Corp.
Seabridge Gold holds a 100% interest in several
North American gold resource projects. The Company’s principal
assets are the KSM and Iskut properties located near Stewart,
British Columbia, Canada and the Courageous Lake gold project
located in Canada’s Northwest Territories. For a breakdown of
Seabridge’s current mineral reserves and resources by project and
category please visit the Company’s website at
http://www.seabridgegold.net/resources.php.
Brewery Creek Mine
Golden Predator conducted exploration drilling
on the Brewery Creek project from 2010 to 2013 which increased the
gold resource significantly. The project has an Indicated oxide
resource of 21,140,00 tonnes at 1.125 g/t Gold containing 765,000
ounces, plus an Inferred oxide resource of 14,120,000 tonnes at
0.967 g/t Gold containing 440,000 ounces. In addition,
resources include 8,570,000 tonnes of Inferred sulfide resource at
0.985 g/t Gold containing 270,000 ounces. Materials on the heap
leach pad were not included in the resource update. The
resource incorporates drill results through 2014. There are
212 additional exploration drill holes to be included in an
anticipated resource update.
The current NI 43-101 Technical Report is now
available on SEDAR and the Company’s website. The updated
report replaces the technical report dated November 19, 2014.
The technical content of this news release has
been reviewed and approved by Jeff Cary, CPG a Qualified Person as
defined by National Instrument 43-101 and is employed by the
Company as its Senior Project Geologist.
Golden Predator Mining
Corp.
Golden Predator is advancing the past-producing
Brewery Creek Mine towards a timely resumption of mining
activities, under its valid Quartz Mining and Water Licenses, in
Canada’s Yukon. The Brewery Creek Mine project has established
resources grading over 1.0 g/t Gold and a feasibility level study
currently underway by Kappes Cassiday considering the economics of
a restart of heap leach operations at the Brewery Creek Mine.
Drilling continues to expand the open-ended resources and
untested targets across the 180 km2 brownfield property located 55
km by road from Dawson City, Yukon. The Company has a
Socio-Economic Accord with the Tr’ondëk Hwëch’in First Nation.
For additional information: Janet
Lee-Sheriff Chief Executive Officer (604) 260-8435
info@goldenpredator.com www.goldenpredator.com
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. No stock exchange, securities commission
or other regulatory authority has approved or disapproved the
information contained herein. This press release contains
forward-looking information that involve various risks and
uncertainties regarding future events. Such forward-looking
information can include without limitation statements based on
current expectations that the sale of 3 Aces will complete as
described herein, that the Brewery Creek will advance through
feasibility. Actual results and future events could differ
materially from those anticipated in such information. These and
all subsequent written and oral forward-looking information are
based on estimates and opinions of management on the dates they are
made and are expressly qualified in their entirety by this notice.
Except as required by law, the Company assumes no obligation to
update forward-looking information should circumstances or
management's estimates or opinions change.
Golden Predator Mining (TSXV:GPY)
Historical Stock Chart
From Jun 2024 to Jul 2024
Golden Predator Mining (TSXV:GPY)
Historical Stock Chart
From Jul 2023 to Jul 2024