Golden Predator Closes Sale of the 3 Aces Project to Seabridge Gold For $6.67MM Plus Royalty and Contingent Payments
26 May 2020 - 9:30PM
Golden Predator Mining Corp. (TSX.V:GPY,
OTCQX:NTGSF) (the “
Company”) announced
today that it has closed the sale of its 100% interest in the 3
Aces gold project to Seabridge Gold Corp. for 300,000 Seabridge
common shares ($6.67 million valuation as of Friday’s close),
contingent future cash payments totaling $2.25 million and a
continuing royalty participation in the project by Golden Predator.
“This non-dilutive transaction strengthens our
balance sheet and allows the Company to focus entirely on our
advanced and 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 the 2019 NI 43-101 technical report.
In addition our successful 2019 drill program of 137 step-out and
infill holes expanded gold mineralization down dip and along strike
connecting a number of known mineral resource areas originally
thought to be separate and discrete into one much larger
mineralized area extending at least 3.5km continuously along
strike. This mineralization remains open along strike and at
depth. A new mineral resource estimate incorporating results from
the 2019 Fall drilling program is anticipated along with a study
underway considering the feasibility of reprocessing the existing
heap leach material mined and partially processed the original
operator of the Brewery Creek Mine,” said Janet Lee-Sheriff, Golden
Predator’s Chief Executive Officer.
“In addition to being able to focus entirely on
advancing our Brewery Creek Mine towards an early production
decision, we look forward to being a shareholder in Seabridge Gold,
whose KSM asset contains 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
remain undervalued with 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.”
Golden Predator’s Investment Committee, whose
members have extensive financial and investment experience, have a
long term view of its Seabridge holdings and will manage the stock
as a long term investment, subject to market conditions.
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.
Brewery Creek Mine
Golden Predator conducted exploration drilling
on the Brewery Creek project from 2010 to 2013 that increased the
gold resource significantly over earlier resource estimates.
Currently, 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, there are 8,570,000
tonnes of Inferred sulfide resource at 0.985 g/t Gold containing
270,000 ounces. Mineralized material on the heap leach pad
were not included in the resource update and is the subject of a
separate ongoing study.
The NI 43-101 Technical Report on Brewery Creek
is now available on SEDAR and the Company’s website. An
updated resource estimate is underway to incorporate the successful
2019 drill campaign.
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.
About Golden Predator Mining Corp.
Golden Predator is advancing the past-producing
Brewery Creek Mine towards a timely resumption of mining
activities, under its 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 study currently underway by Kappes
Cassiday to consider the feasibility of reprocessing the existing
heap leach material. Drilling continues to expand the open-ended
mineralized areas 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.
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.
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 Brewery Creek will advance to an
early production decision, or the extent of any additional mineral
resource that could result from incorporating 2019 exploration
drilling. 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.
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