05:44:55 EST Tue 18 Dec 2018
Enter Symbol
or Name
USA
CA



Login ID:
Password:
Save
Chimata Gold Corp (2)
Symbol C : CAT
Shares Issued 35,587,270
Close 2018-11-13 C$ 0.10
Recent Sedar Documents

Chimata closes Troilus North sale to Emgold

2018-11-16 13:11 ET - News Release

Mr. Richard Groome reports

CHIMATA GOLD CORP SELLS ITS INTEREST IN TROILUS NORTH PROPERTY FOR CASH AND SHARES

Chimata Gold Corp.'s amendment to the option agreement previously entered into with Emgold Mining Corp. on June 27, 2018, and as announced in a press release on the same day, granting Emgold the option to acquire up to a 100-per-cent interest in the Troilus North property from the company, has been approved by the TSX Venture Exchange. Details of the amendment were announced by the company in a news release dated Aug. 13, 2018.

Emgold has accelerated and completed all the requirements of the option agreement and the amending agreement, thereby closing the acquisition by Emgold of a 100-per-cent interest in the property from the company.

Details on the option agreement and amendment

The option agreement and amendment provide that Emgold would have the exclusive right and first option to acquire an 80-per-cent interest in the property over a two-year period for consideration of common shares Emgold would issue to Chimata as shown in the table on the first option requirements, completion of $300,000 (Canadian) in exploration expenditures to be incurred within two years of closing of the transaction and a cash payment of $200,000 (Canadian).

                    SHARE, CASH, AND EXPLORATION EXPENDITURE REQUIREMENTS
                          FOR FIRST OPTION, TROILUS NORTH PROPERTY

Date                                  Common shares            Cash   Exploration expenditures

Upon closing of
transaction, June 27, 2018        2,000,000 (issued)             $0             not applicable

Upon approval of the
amendment                                       nil        $200,000             not applicable

First anniversary of the
closing date                              2,000,000              $0             not applicable

Second anniversary of
the closing date                          1,000,000              $0                   $300,000

Total first option                        5,000,000        $200,000                   $300,000

Upon completing the first option, Emgold would have a further option to acquire the remaining 20-per-cent interest (total 100-per-cent interest) in the property by issuing to the company a further 1.0 million common shares as shown in the table on the second option requirements. Chimata will retain a 1-per-cent net smelter return (NSR) royalty for Troilus North, being agreed that half of which (0.5 per cent) could be purchased by Emgold at any time for $500,000 (Canadian) and that the entire NSR (1.0 per cent) could be purchased by Emgold at any time for $1-million (Canadian).

                               SHARE, CASH AND ROYALTY REQUIREMENTS
                             FOR SECOND OPTION, TROILUS NORTH PROPERTY

Date                                  Common shares            Cash                 Royalty

Upon exercise of second option            1,000,000             nil                1.0% NSR
Total second option                       1,000,000             nil                $300,000

Exercise of first option and second option to acquire 100-per-cent interest in the Troilus North property

Since optioning the property, Emgold has completed the $300,000 (Canadian) requirement in exploration expenditures on the property and has elected to move forward with acquisition of a 100-per-cent ownership of the property by accelerating the exercise of the first option and second option together. As such, Emgold has closed the 100-per-cent acquisition of the property by completing the remaining requirements of the option agreement and amendment, which required Emgold to issue 4.0 million additional common shares, make a cash payment of $200,000 (Canadian) and grant a 1.0-per-cent NSR on the property to Chimata. Following the closing of the transaction, Chimata holds 6.0 million common shares of Emgold out of 30,968,805 common shares, representing 19.4 per cent of Emgold's issued and outstanding share capital. The transaction described herein between Emgold and Chimata was a non-arm's-length transaction as Chimata's director and chief financial officer, Robert Rosner, also acts as director of Emgold.

Alain Moreau, a qualified person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects, has approved the scientific and technical disclosure in this press release.

We seek Safe Harbor.

© 2018 Canjex Publishing Ltd. All rights reserved.