VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 25, 2013) - Delta Gold Corporation (the "Company or Delta") (TSX VENTURE:DLT) is pleased to announce amendments to its Share Purchase Option Agreement (the "Agreement") with Goldcorp Inc. ("Goldcorp"), through which Delta holds the right to acquire 100% of the Imperial Gold Project in California.
Mr. Marco Romero, Delta's President and CEO, stated that "these amendments now tie future option payments and work commitment to specific project milestones. The revised Agreement terms were designed to give Delta the flexibility to move forward with its evaluation, planning and consultative activities at a natural pace. We appreciate Goldcorp's ongoing support as we advance this promising project."
Summary of Amendments to the Agreement
A) Work Commitments:
- 5 (five) annual property work requirements of $2.0 million starting in 2013, with $1.0 million of the 2013 costs deferrable to 2014.
- As amended
- 4 (four) annual property work requirements of $3.0 million, $3.0 million, $2.0 million and $2.0 million starting when all permits for the feasibility study drill program the are received.
B) Share Purchase Payments:
- 5 (five) annual $5.0 million share based payments starting in 2012.
- As amended
- 1 (one) $5.0 million share-based payment. (First payment was made in 2012)
- 1 (one) $2.5 million share-based payment when all permits for the feasibility study drill program are received.
- A final $10,000 cash payment within 4 years of the $2.5 million share-based payment.
Upon making all the above payments and completing the Work Commitments, Delta will own 100% of the Imperial Gold Project.
C) Contingent Payments after 100% ownership:
- $5.0 million share-based payment when an Imperial Gold Project construction decision is made
- When the gold price is greater than US$1,300 per ounce, 50% of revenue between actual gold price and US$1,300 will be paid to Goldcorp over the first 4 years of commercial production, to a maximum of $15 million.
- As amended
- $5.0 million share-based payment when an Imperial Gold Project construction decision is made (unchanged).
- $5.0 million share-based payment when the Imperial Gold Project reaches commercial production.
- When the gold price is greater than US$1,300 per ounce, 50% of revenue between actual gold price and US$1,300 will be paid to Goldcorp over the first 6 years of commercial production, to a maximum of $27.5 million.
Delta Gold Corporation is a development stage mining company whose goal is to build a successful mid-tier gold producer, committed to industry-leading technical, environmental and social best practices. Our business strategy is to identify and evaluate mineral investment opportunities located in favourable jurisdictions and settings, and to prudently acquire and develop projects that are economically, socially and environmentally viable.
Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
This document may contain "forward-looking information" within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking statements"). These forward-looking statements are made as of the date of this document and Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required under applicable securities legislation. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.