Golden Predator Royalty & Development Corp.

Golden Predator Royalty & Development Corp.

July 09, 2009 11:00 ET

Golden Predator Signs Option on Gold Dome Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 9, 2009) -


Golden Predator Royalty & Development Corp. (TSX VENTURE:GPD) (the "Company") announces that, further to its news release of June 5, 2009, it has signed a Property Option Agreement with Copper Ridge Explorations Inc. (TSX VENTURE:KRX) and True North Mining Corp., the Company's wholly-owned Yukon subsidiary ("True North") pursuant to which True North can acquire a 100% interest in the Gold Dome Property (formerly Scheelite Dome) located in the Mayo Mining District in the Yukon Territory.

As consideration for the grant of the option, True North has agreed to pay $20,000, issue 100,000 units ("Units") and provide a credit facility of up to $300,000 via convertible promissory notes (the "Notes"). In order to exercise the option, True North must incur $200,000 in exploration expenditures by November 30, 2009 and issue an additional 575,000 Units to Copper Ridge.

True North has begun to implement its 2009 work program on the Gold Dome Property, consisting of trenching, geochemical sampling and an initial 3,000 feet of diamond drilling on high priority targets. "We are enthusiastic about our first work program in the Yukon and anticipate following closely with our planned program on the Brewery Creek Project" said William Sheriff, Chairman & CEO of the Company.

Each Unit will consist of one share of the Company and one non-transferable warrant. Each warrant will be exercisable for one share of the Company for a period of two years at a price of $0.75 for the first six months and $0.90 for the remaining 18 months. The number of Units will be adjusted upwards if the VWAP of the Company's common shares for the twenty days prior to the exercise of the option is less than $0.50, subject to a floor of $0.40.

Should the Property become the subject of a positive bankable feasibility study ("BFS") prior to December 31, 2011, the Company will issue an additional 500,000 shares of to Copper Ridge, subject to a $1,000,000 cap in value. The cap will be raised to $1,500,000 if a BFS is delivered from January 1, 2012 through December 31, 2013, to $2,000,000 if a BFS is delivered from January 1, 2014 through December 31, 2015, and to $2,500,000 thereafter.

The Notes are repayable by Copper Ridge from the proceeds of its next financing, and the Notes bear interest at prime plus 2% after November 30, 2009. In addition, subject to the acceptance of the TSX Venture Exchange, the principal and interest under the Notes outstanding after November 30, 2009 is convertible at the election of Copper Ridge into common shares at a price of $0.03 per share.

The Gold Dome property is subject to a 2% NSR payable to International Royalty Corporation on the mineral claims and an additional 2% NSR on certain of the mineral claims. The agreement is subject to a number of conditions precedent, including regulatory approval.

About Golden Predator Royalty & Development Corp.

Golden Predator is focused on becoming a mid-tier precious metals producer in Nevada through the strategic use of its Taylor milling facility near Ely, Nevada along with a facilities use agreement at EMC Metals' Springer Facility in Pershing County Nevada which is adjacent to Predator's Humboldt mill site.

In addition, the Company is aggressively exploring the Gold Dome and Brewery Creek projects in the prolific Tintina Gold Trend of the Yukon Territory through its wholly owned subsidiary True North Mining Corp. In Nevada, Golden Predator is planning to drill a number of its bonanza gold and silver projects in 2009 with the mandate to identify one or more properties for near term production of small-tonnage high grade ores.

Golden Predator is partially self-financed through its passive pre-production royalty stream from a portfolio of properties, anticipated to yield approximately $1.2 million during 2009. The Company owns royalties on several known deposits including a portion of the Barrick Bald Mountain property, the Pan deposit of Midway Gold, significant portions of US Gold's Tonkin Springs deposit and Evolving Gold's Rattlesnake project.

This press release contains projections and 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 involving a number of risks and uncertainties and are not guarantees of future performance. There are numerous risks and uncertainties that could cause actual results and Golden Predator's plans and objectives to differ materially from those expressed in the forward-looking information. 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, Golden Predator assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.

Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Golden Predator Royalty & Development Corp.
    William Sheriff
    (867) 335-5000
    Golden Predator Royalty & Development Corp.
    Robert Eadie
    (604) 602-4935