VANCOUVER, BC--(Marketwired - January 03, 2017) - Golden Predator Mining Corp. (TSX VENTURE: GPY) (OTCQX: NTGSF) (the "Company" or "Golden Predator") announces that it has entered into a mineral property purchase agreement (the "Agreement") with Bearing Resources Ltd. (TSX VENTURE: BRZ), a British Columbia Corporation listed on the TSX Venture Exchange ("Bearing Resources") pursuant to which Golden Predator has agreed to purchase all of Bearing Resources' undivided interest in certain mineral claims (the "Claims") located in the Upper Hyland River area in the southeast region of the Yukon Territory (the "Property") (the "Acquisition").
In consideration for the Claims, Golden Predator will pay to the Vendor an aggregate cash payment in the amount of $275,000, payable over a 48 month period from the execution date of the Agreement (the "Execution Date"). In addition, Golden Predator will issue 35,000 common shares of the Company to the Vendor upon TSXV approval, and a further 50,000 common shares on the date that is 8 months from the Execution Date. Golden Predator has also agreed to issue up to $600,000 worth of common shares of the Company to the Vendor on the dates that are 20 months, 32 months, and 48 months from the Execution Date, at a price per share equal to the 21-day VWAP as at the date of issuance, subject to a floor price equal to the minimum price permitted under the TSXV policies.
Pursuant to the Agreement, Golden Predator will grant to the Vendor a 2% net smelter return royalty on certain of the claims and a 1% net smelter returns royalty on the remaining claims (the "NSR"). Golden Predator may re-purchase 50% of the NSR, at any time, for the purchase price of $1,000,000.
Completion of the Acquisition and the obligation to make any payments other than the initial cash payment and share issuance is conditional upon completion by Bearing Resources of its previously announced transaction with Li3 Energy Inc ("Li3"). In the event the transaction with Li3 does not complete, the initial share issuance will be returned to the Company. The Acquisition is also subject to TSXV approval.
The common shares issued pursuant to this Acquisition will be subject to a four-month hold period in accordance with applicable securities laws.
Golden Predator Mining Corp.
Golden Predator Mining Corp., a well-financed Canadian gold mineral exploration company is expanding surface discoveries, at its 3 Aces project in Canada's Yukon, through focused drilling. The 3 Aces property is a high-grade gold in quartz project with an exploration program underway that includes sampling, trenching, drilling and bulk sampling to define and interpret the project. The Company also holds the Brewery Creek project in Canada's Yukon.
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 news release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively "forward-looking statements"). The use of any of the words "will" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such forward-looking statements should not be unduly relied upon. This news release contains forward-looking statements and assumptions pertaining to the following: completion of the Acquisition, payment of the aggregate cash payment, issuance of common shares, and grant of the NSR. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. The Company believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct.