Sage Gold Updates Status Report
04 August 2018 - 8:25AM
Sage Gold Inc. (“Sage Gold” or the “Company”) (TSX-V:
SGX) reports that on July 30, 2018 the Ontario
Superior Court of Justice Commercial List (the “Court”) issued a
Court Order (the “Order”) against the Company, appointed Deloitte
Restructuring Inc. as receiver over all of the assets, undertakings
and properties of the Company. The applicant, CRH Funding II
Pte. Ltd. (“CRH”) had brought the receivership application,
alleging that Sage Gold had become insolvent and as such, was
unable to fulfil its obligations to CRH under a gold prepayment
agreement (the “Agreement”).
Sage opposed the appointment of a receiver on
the basis that there was an arbitration clause in the Agreement
with CRH. The Court ordered that the appointment of the
receiver was without prejudice to Sage to seek leave to commence
arbitration proceedings. The endorsement of the Court also
provided that if Sage is actively and seriously pursuing a
restructuring alternative to receivership, it will have an
opportunity to make that case to the Court.
Nigel Lees, President and CEO stated, “First and
foremost, we would like to thank all of our employees,
shareholders, consultants and creditors for their incredible
support as we undertook to restart the Clavos mine. From all
of our suppliers, to the mining community in Timmins, to our
investors, and partners in First Nations, we owe you a debt of
thanks for continuing to support the Company.
CRH is a Singapore based company sponsored by
Cartesian Capital Group, a New York based private equity group.
As the secured lender, they have aggressively pursued
appointing a receiver over the assets of Sage Gold. Despite
this, be assured that management, directors, consultants and
contractors of Sage Gold have worked tirelessly, and often without
pay, in an attempt to resolve the situation over the past several
months. Unfortunately, without the support of CRH, the
Company's major stakeholder, it became almost impossible to raise
urgently needed funding.
Nevertheless, we are pleased the Court is
prepared to hear an application for leave to commence arbitration
proceedings and will reconsider the appointment of a receiver if
Sage is able to present a credible restructuring alternative to
receivership. To this end, we plan to continue working to
find a satisfactory outcome for all stakeholders and would
encourage any parties interested in working with the Company on a
strategic financial plan to contact us.”
About Sage Gold
Shares Outstanding: 110,183,926
The Company is a mineral exploration and
development company which has primary interests in near-term
production and exploration properties in Ontario. Its main
properties are the Clavos Gold property, 100% owned, in Timmins and
the 100% owned Onaman property and other exploration properties in
the Beardmore-Geraldton Gold Camp. Technical reports and
information relating to the properties can be obtained from the
System for Electronic Document Analysis and Retrieval (“SEDAR”)
website at www.sedar.com and from the Company’s website at
www.sagegoldinc.com.
Contact Information:
Nigel Lees, President and CEO
416-204-3170nlees@sagegoldinc.comwww.sagegoldinc.com
CAUTIONARY STATEMENT: 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. This
news release may contain forward looking information and the
Company cautions readers that forward looking information is based
on certain assumptions and risk factors that could cause actual
results to differ materially from the expectations of the Company
included in this news release. This news release includes certain
"forward-looking statements”, which often, but not always, can be
identified by the use of words such as "believes", "anticipates",
"expects", "estimates", "may", "could", "would", "will", or "plan".
These statements are based on information currently available to
the Company and the Company provides no assurance that actual
results will meet management's expectations. Forward-looking
statements include estimates and statements with respect to the
Company’s future plans, objectives or goals, to the effect that the
Company or management expects a stated condition or result to
occur. Since forward-looking statements are based on assumptions
and address future events and conditions, by their very nature they
involve inherent risks and uncertainties. Actual results relating
to, among other things, results of exploration, metallurgical
processing, project development, reclamation and capital costs of
the Company’s mineral properties, and the Company’s financial
condition and prospects, could differ materially from those
currently anticipated in such statements for many reasons such as,
but are not limited to: the ability to rectify breaches of
covenants under existing loan agreements with CRH Funding II Pte.
Ltd. and to satisfy this lender to forbear from creditor remedies
in the interim; failure to identify mineral resources; failure to
convert estimated mineral resources to reserves; the preliminary
nature of metallurgical test results; delays in obtaining or
failures to obtain required governmental, environmental or other
project approvals; political risks; uncertainties relating to the
availability and costs of financing needed at the present time and
in the future; changes in equity markets, inflation, changes in
exchange rates; fluctuations in commodity prices; delays in the
development of projects; capital and operating costs varying
significantly from estimates and the other risks involved in the
mineral exploration and development industry; and those risks set
out in the Company’s public documents filed on SEDAR. This list is
not exhaustive of the factors that may affect any of the Company’s
forward-looking statements. These and other factors should be
considered carefully and readers should not place undue reliance on
the Company’s forward-looking statements. Although the Company
believes that the assumptions and factors used in preparing the
forward-looking information in this news release are reasonable,
undue reliance should not be placed on such information, which only
applies as of the date of this news release, and no assurance can
be given that such events will occur in the disclosed time frames
or at all. The Company disclaims any intention or obligation to
update or revise any forward-looking information, whether as a
result of new information, future events or otherwise, other than
as required by law.
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