https://www.miningweekly.com

TSX-V-listed juniors announce gold-stream funding for Nicaragua project

TSX-V-listed juniors announce gold-stream funding for Nicaragua project

Photo by Reuters

28th February 2014

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

Font size: - +

TORONTO (miningweekly.com) – TSX-V-listed juniors Golden Reign Resources and Marlin Gold Mining this week announced that they had entered into a a binding agreement for a $15-million gold streaming arrangement at Golden Reign’s San Albino gold deposit and the surrounding area, located in Nueva Segovia, Nicaragua.

Under terms of the transaction, Marlin would provide construction and development capital and, in turn, Marlin's wholly owned subsidiary, Sailfish, would be entitled to buy 40% of gold output at $700/oz until an amount of $19.6-million had been recovered by Sailfish, and 20% of gold output at $700 per troy ounce thereafter.

Before commercial production starts, Sailfish would also be entitled to receive an 8% twice-yearly coupon payment on the $15-million deposit. Golden Reign would also be required to make minimum monthly payments of $282 800 once commercial production had been declared.

"We are extremely pleased to announce the signing of the letter of intent with Marlin. Marlin shares our vision for the continued expedited advancement of our high-grade San Albino gold asset,” Golden Reign president and CEO Kim Evans said on Wednesday.

Golden Reign’s flagship San Albino deposit had been the company's priority focus for the past four years. Covering a 3.5 km2 area within highly prospective 138 km2 land-holdings, it would be the first target moved towards production. Once operations had been successfully established, the company expects to use the cash flows to progress exploration targets at the Las Conchitas, Murra and the El Jicaro concessions, in its strategy of adding significant value to the company while reducing shareholder dilution.

“We look forward to and are excited to be transitioning from an explorer to producer,” Evans said.

Concurrent with the closing of the transaction, Marlin would take a 19.9% interest in Golden Reign by buying 21.3-million common shares for about $3.2-million, subject to regulatory approvals.

Marlin shares on Thursday rose 16.67% to C$0.14 a share and that of Golden Reign rose 8.57% to C$0.19 apiece.

Edited by Creamer Media Reporter

Comments

Showroom

Rittal
Rittal

Rittal is a world leading provider of top-quality integrated systems for enclosures, power distribution, climate control, IT infrastructure and...

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.197 0.234s - 90pq - 2rq
Subscribe Now