Metals Update 27/05/2021

Roscan Gold property agreement

The TSX Venture Exchange has accepted for filing documentation pertaining to an option agreement dated April 7, 2021, between the company and an arm’s-length party, whereby the company has the exclusive and irrevocable right and option to acquire a 100-per-cent interest in one gold and group mineral substances research and exploration permit, located in the Kayes region of the Republic of Mali.

Under the terms of the agreement, the company has agreed to pay 115 million West African francs in cash and issue 115 million West African francs worth of shares, of which 90,731 common shares were issued at 50 cents per share on closing (representing 20 million West African francs), to vendors, and to complete an aggregate of 191 million West African francs in work expenditures over a two-year period. The vendor retains a 2-per-cent net smelter return (NSR) royalty, while the company will be able to buy back a 1-per-cent NSR royalty for $1-million (U.S.). Furthermore, the company is obligated to pay to the vendor $1-million (U.S.) upon the property entering into industrial gold production and another $1-million (U.S.) if the arranged bankable feasibility study reveals proven gold reserves equivalent to more than one million ounces.