Scorpio Gold Signs LOI to Sell Pinon Properties to Gold Standard Ventures
29 Janvier 2014 - 2:00PM
Marketwired
Scorpio Gold Signs LOI to Sell Pinon Properties to Gold Standard
Ventures
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan 29, 2014) -
Scorpio Gold Corporation ("Scorpio Gold" or the "Company")
(TSX-VENTURE:SGN) reports today that it has signed a binding letter
of intent ("LOI") and received a CAD$250,000 non-refundable deposit
(the "Deposit") for the sale of certain mining interests (the
"Pinon Properties") to an affiliate of Gold Standard Ventures Corp.
("Gold Standard"). The Pinon Properties are located in Elko County,
Nevada at the southern end of the prolific Carlin Trend.
Transaction Highlights
- Gold Standard agrees to pay Scorpio Gold a total of
CAD$8,500,000 in cash and issue Scorpio Gold 5,500,000 common
shares in its capital stock
- Of the cash consideration, CAD$6,000,000 is to be paid at
closing (inclusive of the Deposit), and CAD $2,500,000 is to be
paid one year after closing
The completion of the transaction is subject to due diligence,
formal documentation, regulatory approvals, final consent of the
Company's lender and Gold Standard completing an equity financing
of at least $8,000,000 prior to closing. The LOI provides for bonus
consideration to be paid to the Company if certain levels of
mineral resources are established on the property or if the
property or Gold Standard are sold for certain minimum amounts. The
LOI also provides that if the full transaction is not completed,
the Company will still sell its interests in two mineral leases
adjacent to the Pinon property, for CAD$1,000,000 cash (inclusive
of the Deposit).
Peter J. Hawley, CEO comments: "This transaction works extremely
well for both companies. Speaking for Scorpio Gold, the combination
of cash, stock and bonus consideration provides the Company and its
shareholders with significant immediate and long term benefits from
a non-core asset. Given today's market we feel that it makes more
sense to concentrate our efforts and financial resources on
expanded exploration and development at our producing Mineral Ridge
gold mine and the advanced stage Goldwedge project. The value of
the full transaction to Scorpio Gold exclusive of the bonus
consideration is approximately $0.11 cents per share, which is felt
to be very accretive to the shareholders of the Company given that
the market was giving Scorpio Gold little to no value for the Pinon
asset."
About the Pinon Properties
The Pinon Properties are located approximately 50 kilometres
south of Elko, Nevada at the southern end of the prolific Carlin
Trend. The lands include 192 unpatented mining claims (over 1,600
hectares) and several private lease agreements (minerals and
surface). Previous explorers include Newmont, Cyprus-Amax, Crown
Resources and Royal Standard Minerals in joint-venture with
Cameco.
Over 350 reverse circulation and diamond drill holes on the
property outline a near surface oxide gold deposit as well as a
deeper collapsed breccia target.
Scorpio Gold, indirectly through certain subsidiaries and
affiliates, owns certain unpatented mining claims and controls fee
lands and/or mineral interests in Township 30 North, Range 53 East,
MDM, Elko County, Nevada referred to as the "Pinon Properties" and
further holds two leases in Section 33 of Township 31 North, Range
53 East, MDM, within the boundaries of Gold Standard's Railroad
Project.
About Scorpio Gold
Scorpio Gold holds a 70% interest in the Mineral Ridge gold
mining operation located in Esmeralda County, Nevada with joint
venture partner Waterton Global Value L.P. (30%), and is currently
entitled to receive 80% of cash flow generated. Mineral Ridge is
currently in production as a low cost conventional open pit mining
and heap leach operation. The Mineral Ridge property is host to
multiple gold-bearing structures, veins and lenses at exploration,
development and production stages. Scorpio Gold also holds a 100%
interest in the advanced exploration-stage Goldwedge property and
processing facility in Manhattan, Nevada. The Company is assessing
its exploration plans for Goldwedge as well as the potential for
toll milling at the Goldwedge plant, which is currently permitted
for 400 tons per day.
Scorpio Gold's CEO, Peter J. Hawley, PGeo, is a Qualified Person
as defined by National Instrument 43-101 and has reviewed and
approved the content of this release.
ON BEHALF OF THE BOARD SCORPIO GOLD CORPORATION
Peter J. Hawley, CEO
Neither 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.
The Company relies on litigation protection for forward-looking
statements. This news release contains forward-looking statements
that are based on the Company's current expectations and estimates.
Forward-looking statements are frequently characterized by words
such as "plan", "expect", "project", "intend", "believe",
"anticipate", "estimate", "suggest", "indicate" and other similar
words or statements that certain events or conditions "may" or
"will" occur, and include, without limitation, statements regarding
the Company's plans with respect to the sale of the Pinon
Properties, exploration, development and exploitation of its
properties. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that could cause
actual events or results to differ materially from estimated or
anticipated events or results implied or expressed in such
forward-looking statements, including risks involved in completing
complex purchase and sale transactions, risks involved in
exploration programs and those risk factors outlined in the
Company's Management Discussion and Analysis as filed on SEDAR. Any
forward-looking statement speaks only as of the date on which it is
made and, except as may be required by applicable securities laws,
the Company disclaims any intent or obligation to update any
forward-looking statement, whether as a result of new information,
future events or results or otherwise. Forward-looking statements
are not guarantees of future performance and accordingly undue
reliance should not be put on such statements due to the inherent
uncertainty thereof.
Scorpio Gold CorporationSteve RoebuckPresident(819)
825-7618sroebuck@scorpiogold.comwww.scorpiogold.comTorrey Hills
CapitalJim MacdonaldInvestor Relations(858)
456-7300jm@sdthc.com
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