VANCOUVER, British Columbia, March 30, 2020 (GLOBE NEWSWIRE) -- Golden Predator Mining Corp. (TSX.V:GPY, OTCQX:NTGSF) (the “Company”) announced today that it has entered into an agreement with Seabridge Gold Corp. for the sale of a 100% interest in the 3 Aces gold project located in Canada’s Yukon, for 300,000 Seabridge common shares, contingent future cash payments totaling $2.25 million and a 0.5% net smelter return royalty on the entire 3 Aces gold project. The arrangement includes an immediate cash payment to Golden Predator of $263,000 for reimbursement of previously incurred expenses. Closing of the transaction is subject to completion of due diligence by Seabridge and the approval of the applicable stock exchanges.
“This non-dilutive transaction strengthens our balance sheet and allows the Company to focus entirely on our advanced 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 a 2019 NI 43-101 report which incorporated drilling data through 2014. This impressive growth trend has continued with the successful 2019 drill program of 177 step-out and infill holes which expanded gold mineralization down dip and along strike, thereby connecting a number of resource areas originally thought to be separate and discrete into one much larger resource with further expansion potential. A new resource estimate incorporating more than 212 holes not included in the 2019 resource is underway along with a feasibility study for reprocessing the existing heap leach material mined and partially processed by Viceroy, the original operator,” said Janet Lee-Sheriff, Golden Predator’s Chief Executive Officer.
Janet Lee-Sheriff added, “In addition to being able to focus entirely on returning our Brewery Creek Mine to an early production decision, we look forward to being a shareholder in Seabridge Gold, whose KSM asset contains NI 43-101 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 have 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.”
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. whose award-winning coinage uses gold recovered from test mining at 3 Aces.
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.
Brewery Creek Mine
Golden Predator conducted exploration drilling on the Brewery Creek project from 2010 to 2013 which increased the gold resource significantly. 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, resources include 8,570,000 tonnes of Inferred sulfide resource at 0.985 g/t Gold containing 270,000 ounces. Materials on the heap leach pad were not included in the resource update. The resource incorporates drill results through 2014. There are 212 additional exploration drill holes to be included in an anticipated resource update.
The current NI 43-101 Technical Report is now available on SEDAR and the Company’s website. The updated report replaces the technical report dated November 19, 2014.
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.
Golden Predator Mining Corp.
Golden Predator is advancing the past-producing Brewery Creek Mine towards a timely resumption of mining activities, under its valid 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 feasibility level study currently underway by Kappes Cassiday considering the economics of a restart of heap leach operations at the Brewery Creek Mine. Drilling continues to expand the open-ended resources 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.
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 sale of 3 Aces will complete as described herein, that the Brewery Creek will advance through feasibility. 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.