06:52:40 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



California Gold Mining Inc (2)
Symbol CGM
Shares Issued 60,409,519
Close 2020-01-28 C$ 0.32
Market Cap C$ 19,331,046
Recent Sedar Documents

California Gold signs CBD isolate sale agreement

2020-01-29 07:36 ET - News Release

Mr. Vishal Gupta reports

CALIFORNIA GOLD ANNOUNCES EXECUTION OF A SECOND SALE AGREEMENT FOR FINISHED PRODUCTS PRODUCED FROM ITS WHOLLY-OWNED HEMP BIOMASS

California Gold Mining Inc. has executed an agreement with a North Carolina-based private hemp-CBD (cannabidiol) production company for the sale of CBD isolate produced from the company's wholly owned, high-CBD hemp biomass.

This agreement is in addition to the previous agreement announced on Jan. 15, 2020, related to the sale of the company's zero-THC (tetrahydrocannabinol) distillate.

Details of the terms of the agreement, effective as of Jan. 27, 2020:

  • The agreement relates to the sale of CBD isolate, which is defined as a crystalline solid or powder that contains greater than 99.5 per cent cannabidiol and less than 0.3 per cent total tetrahydrocannabinol (THC) by dry weight derived from hemp plants.
  • The purchase price has been set at $3,500 (U.S.) per kilogram of CBD isolate.
  • California Gold Mining's cost of goods sold associated with the production of CBD isolate is approximately $2,450 (U.S.) per kilogram.
  • The term of the agreement is one year, and the parties expect to complete sales of CBD isolate recurring on a monthly basis during this term.

A total of up to 1,000 kilograms of CBD isolate is expected to be transacted upon within 40 days.

California Gold's president and chief executive officer, Vishal Gupta, stated: "The execution of a second sale agreement within a few days of executing the first is a testament to the high quality of CGM's various refined products, and management's commitment to achieving positive cash flow in Q1 2020. CGM's board of directors recognizes that diversification of the company's revenue stream will be critical to long-term sustainability of positive cash flow in this nascent hemp-CBD sector. With this goal in mind, management continues to explore additional avenues for revenue generation from the company's hemp business segment."

The company's board of directors continues to investigate the economics of purchasing additional batches of hemp biomass in order to produce and eventually sell additional refined products once the sale of the current inventory of refined products is complete.

About California Gold Mining Inc.

California Gold is focused on continued development of a high-quality gold resource on its 100-per-cent-owned Fremont property in Mariposa county, California. The Fremont property consists of an entirely private and patented land package totalling 3,351 acres of historically producing gold mines, with a state highway, PG&E electric substation and abundant water present on the property itself. The Fremont property lies within California's prolific Mother Lode gold belt that has produced over 50 million ounces of gold.

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