Signs US$9 Million Gold Forward Purchase Agreement
Guyana Goldstrike Inc. (GYA.V) announced it has signed a definitive gold forward purchase agreement, dated January 24, 2020, with an arms-length investor for proceeds of up to US$9,000,000, for the Marudi Gold Project located in Guyana, South America.
Under the terms of the Agreement, the Investor will make an initial payment of US$2,000,000 on or before April 14, 2020. Thereafter, a second payment of US$7,000,000 will be advanced within thirty days of a royalty interest in the Project in favour of the Investor having been registered.
The Agreement is non-dilutive to the Company’s current share structure as no shares or warrants will be issued to the Investor. The proceeds will enable the Company to finalize its purchase of the Project and further explore and develop the resource potential of the Property.
In consideration for providing funding, the Company has agreed to deliver 30,000 ounces of gold, representing approximately 10% of the Project’s current mineral resource estimate. Deliveries will commence within 120 days of a declaration of commercial production from the Project, or within 36 months of the initial funding under the Agreement, whichever the earlier, with an annual delivery schedule of 3,000 ounces. The Company has also agreed to grant the Investor a right of first refusal to acquire a further 30,000 ounces of gold, on terms to be negotiated between the parties.
The delivery obligation of the Company will be secured by a 12.5% net smelter returns royalty in favour of the Investor, to be registered against the Project. The royalty will not be payable while the Company meets the deliver schedule and will expire once all delivery obligations under the Agreement have been satisfied.
MARUDI GOLD PROJECT HIGHLIGHTS
- Share Structure 58 M I/O (Jan 2020)
- Zijin (HK) Resource Funds own 20% (invested $3.2M in 2018)
- Advanced Exploration Project with 40,000 m drilling completed
- Two Mineralized zones / deposits the Mazoa Hill & Marudi North
- 43-101 Gold Resource of 345,700 oz - Mazoa Hill zone / deposit
- Near Surface Open Pit Mine Scenario
- 13,500 acres (54 sq. kms) in size
- 15 % of Project Explored to Date
- New Discovered Area the 2.5 km Toucan Ridge trenched Sampled as high as 23.5 g/t gold
- 21 Geophysical Targets Identified
- Geophysics Showing More Depth and Lateral Extensions to Drill Targets
- Driller Company Selected
- Property Drill Ready
- Mining Permit for Production in Place
- Mining Camp in Place
Symbols: GYA.V / GYNAF / 1ZT
52 week hi / lo - $0.215 - $0.035
To learn more about Guyana Goldstrike and its advanced Marudi Gold Project please visit www.guyanagoldstrike.com