Not for distribution to U.S. news wire services or dissemination in the United States
VANCOUVER, British Columbia, Nov. 27, 2019 (GLOBE NEWSWIRE) -- GT Gold Corp. ("GT Gold" or the “Company”) (TSX.V: GTT) is pleased to announce a C$8.3 million financing by Newmont Goldcorp Corporation (“Newmont Goldcorp”) (NYSE: NEM, TSX: NGT). The financing is a private placement of 6,877,199 common shares priced at $1.20 per share for total consideration of $8,252,638.80. Upon completion of the financing, Newmont Goldcorp will own 14.9% of GT Gold’s outstanding shares, an increase from the 9.9% acquired by Newmont Goldcorp on May 29, 2019.
“I am delighted that the world’s leading gold producer, Newmont Goldcorp, has increased its stake in GT Gold through this financing, which further supports the thesis that the Saddle North gold-rich copper porphyry discovery has the pedigree to become a Tier 1 asset,” said Paul Harbidge, President and Chief Executive Officer. “The drill results from the 2019 field season continue to delineate a project with scale, grade and bulk mining options while exploration results from within the 46,827 hectare Tatogga project are providing a pipeline of future targets for drill testing, in what we believe to be a new porphyry district in British Colombia, Canada. Matched with excellent infrastructure, this project makes for a compelling investment. Newmont Goldcorp is an excellent partner and is providing significant technical expertise to the GT Gold team in accelerating the advancement of Saddle North to a geological model, expected end of the first quarter of 2020, followed by the release of an inaugural resource, expected by the end of the second quarter of 2020 and a Preliminary Economic Assessment (“PEA”) by late 2020.”
Following the completion of the financing, GT Gold expects cash on hand to be sufficient to fund all expenditures up to and including the PEA, as well as a provide a sizeable buffer for work following the PEA into 2021, to be planned based on the results of the 2020 technical program.
The financing transaction is scheduled to close on or about December 13, 2019 and is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory and other approvals, including the approval of the TSX Venture Exchange.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
GT Gold has been advised that following the financing, Newmont Goldcorp will own 18,366,800 common shares, representing 14.9% of the issued and outstanding common shares of GT Gold. Prior to completion of the financing, Newmont Goldcorp holds 11,489,601 common shares representing approximately 9.9% of the issued and outstanding common shares of GT Gold. A copy of the Early Warning report filed by Newmont Goldcorp in connection with the transaction will be available on GT Gold’s SEDAR profile or can be obtained by contacting Paul Harbidge at 647-256-6754 on closing. Newmont Goldcorp's head office is located at 6363 South Fiddler’s Green Circle, Suite 800, Greenwood Village, Colorado, 80111.
About GT Gold
GT Gold Corp. is focused on exploring for base and precious metals in the geologically fertile terrain of British Columbia’s renowned Golden Triangle. The Company’s flagship asset is the wholly-owned, 46,827 hectare Tatogga property, located near Iskut, BC, upon which it achieved two significant discoveries in 2017 and 2018 at its Saddle prospect: a near surface bulk-tonnage and potential deep high-grade underground-style epithermal gold-silver vein system at Saddle South and, close by at Saddle North, a large-scale, richly mineralized porphyry gold-copper-silver mineralized intrusion.
About Newmont Goldcorp
Newmont Goldcorp is the world’s leading gold company and a producer of copper, silver, zinc and lead. Its world-class portfolio of assets, prospects and talent is anchored in favorable mining jurisdictions in North America, South America, Australia and Africa. Newmont Goldcorp is the only gold producer listed in the S&P 500 Index and is widely recognized for its principled environmental, social and governance practices. Newmont Goldcorp is an industry leader in value creation, supported by robust safety standards, superior execution and technical proficiency. Newmont Goldcorp was founded in 1921 and has been publicly traded since 1925.
For further information, please contact:
|GT Gold Corp.|
President and Chief Executive Officer
Tel: (647) 256-6752
|GT Gold Corp.|
Chief Financial Officer
Tel: (604) 417-2766
|GT Gold Corp.|
Charles J. Greig, P.Geo
Vice President, Exploration
Tel: (250) 492-2331
This News Release may contain forward-looking statements including but not limited to the receipt of approvals for the financing, closing of the financing, use of proceeds of the financing and timing and content of upcoming work programs. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements and GT Gold undertakes no obligation to update such statements, except as required by law.
For additional information on risks and uncertainties, see the Company’s most recently filed annual management discussion and analysis (“MD&A”), which is available on SEDAR at www.sedar.com and on the Company’s website at www.gtgoldcorp.ca. The risk factors identified in the MD&A are not intended to represent a complete list of factors that could affect the Company.
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.