The TSX Venture Exchange has accepted for filing the exploration, exploitation and option agreement dated April 14, 2014, between Cangold Ltd., through its wholly owned Mexican subsidiary, Coboro Minerales de Mexico SA de CV, and Minera Gold Stake SA de CV, a wholly owned Mexican subsidiary of Vista Gold Corp. Cangold, by exercising two separate options under the agreement, will hold a 100-per-cent interest in the Guadalupe de los Reyes project, subject to underlying royalties previously granted to former owners of the concessions comprising the property.

Consideration under the agreement is as follows.

First option

Cangold, through Coboro, may exercise its first option to acquire a 70-per-cent interest by making staged payments over a three-year period of $5-million (U.S.) and by maintaining the property in good standing. Under the terms of the agreement, during the first option period, the company, through Coboro, will be entitled to extract, during any 12-month period and for the purpose of metallurgical testing, up to 100 tonnes of bulk sample.

Second option

Upon exercise of the first option, the company, through Coboro, may exercise a second option to acquire an additional 30-per-cent interest for a total 100-per-cent interest. The company must make a positive production decision and a payment of $3-million (U.S.) plus an escalator payment based upon the then current price of gold and the number of measured and indicated gold equivalent ounces compliant with National Instrument 43-101 in excess of those estimated in the preliminary economic assessment carried out on the property by Tetra Tech for Vista on March 4, 2013.

In the event the second option is not exercised by the company, through Coboro, in accordance with the terms of the agreement, Vista, through MGS, will have the option to buy back Cangold's initial 70-per-cent interest for $5-million (U.S.) plus an amount equal to the escalator payment. In the event Vista, through MGS, does not exercise the buyback option, Cangold, through Coboro, will retain its initial 70-per-cent interest.

Further information on this transaction is available in Cangold's news releases dated Feb. 24, 2014, April 15, 2014, April 22, 2014, June 5, 2014, June 13, 2014, and July 23, 2014.