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Golden Reign Resources Ltd. (TSXV:GRR) announced yesterday that it has entered into a binding letter of intent (LOI) with Marlin Gold Mining Ltd. (TSXV:MLN) regarding a US$15-million gold streaming agreement for its Nicaragua-based San Albino deposit.
Golden Reign Resources Ltd. (TSXV:GRR) announced yesterday that it has entered into a binding letter of intent (LOI) with Marlin Gold Mining Ltd. (TSXV:MLN) regarding a US$15-million gold streaming agreement for its Nicaragua-based San Albino deposit.
Transaction details include:
- Marlin will provide US$15.0 million (the ‘Purchase Price’) to be used for construction and development at the San Albino Gold Deposit and surrounding area. The designated area comprises a total of 3.5 square kilometres
- Marlin’s wholly-owned subsidiary, Sailfish, will be entitled to purchase 40% of gold production at US$700 per troy ounce until an amount of US$19.6 million is recovered by Sailfish, and 20% of gold production at US$700 per troy ounce thereafter
- Prior to commercial production Sailfish will be entitled to receive an 8% semi-annual coupon payment on the Purchase Price
Kim Evans, president and CEO of Golden Reign, commented:
We are extremely pleased to announce the signing of the LOI with Marlin. Marlin shares our vision for the continued expedited advancement of our high-grade San Albino gold asset in Nicaragua. The San Albino Deposit has been the Company’s priority focus for the past four years. Covering a 3.5 square kilometre area within the Company’s highly prospective 138 square kilometre landholdings, it will be the first target moved towards production. Once operations are successfully established, the Company anticipates that cash flows will enable it to progress exploration targets at Las Conchitas, Murra and the El Jicaro Concession, with the strategy of adding significant value to the Company while minimizing dilution to our shareholders.
Click here to read the full Golden Reign Resources Ltd. (TSXV:GRR) press release.