Mr. Hugh Agro reports
REVIVAL GOLD AMENDS TERMS OF PROPERTY AGREEMENTS
Revival Gold Inc. has completed arrangements to defer commitments related to the acquisition of the company's Beartrack and Arnett properties.
On April 9, 2020, Revival Gold executed an agreement to defer remaining payments under the option agreement between the company and certain vendors to acquire the Barnett claims located within Arnett (announced on June 30, 2017) by one year. Previously, the company's remaining option payments under the Barnett agreement were due on June 30, 2020, and June 30, 2021. In exchange for making a cash payment of $75,000 (U.S.) to the vendors, Revival Gold's two remaining option payments under the Barnett agreement of $250,000 (U.S.) each are now due on June 30, 2021, and June 30, 2022, respectively.
On May 20, 2020, Revival Gold executed a second amendment to the terms of the earn-in and related stock purchase agreement, allowing the company to acquire Meridian Beartrack Co., a subsidiary of Yamana Gold Inc. and the owner of Beartrack, upon the satisfaction of certain conditions, including incurring certain exploration expenditures on the property. The initial terms of the agreement were announced by the company on Sept. 7, 2017, and were amended on May 8, 2019.
Under the second amendment, in exchange for an additional $2-million (U.S.) exploration spending commitment by the company and the grant of an additional 0.25-per-cent net smelter return (NSR) royalty payable to Yamana capped at $1-million (U.S.), Yamana has agreed to a one-year deferral of: (i) site maintenance/reclamation costs, previously to be incurred in the fourth year of the agreement, which will now be incurred in the fifth year of the agreement; and (ii) the earn-in election date, previously to be made by the end of year four, which the company can now make by the end of year five.
"As a further response to the COVID-19 pandemic, under Revival Gold's amended property agreements, the company has reduced near-term cash outflows and relaxed earn-in terms," said Hugh Agro, president and chief executive officer. "This added flexibility will allow the company to continue to build asset value through the current period of turbulent market conditions."
Revival Gold's remaining commitments in respect of Beartrack under the second amendment are summarized as follows:
- One million common shares of Revival Gold due at the end of the third year of the agreement (Sept. 29, 2020);
$6.0-million (U.S.) in aggregate exploration spending by Sept. 29, 2020 (of which $6.1-million (U.S.) had been expended at March 31, 2020), $8.0-million (U.S.) in aggregate exploration spending by Sept. 29, 2021, and $10-million (U.S.) in aggregate exploration by Sept. 29, 2022;
Financing site maintenance/reclamation costs in the fifth year of the agreement (expected to be approximately $1-million (Canadian)) beginning Sept. 30, 2021;
The assumption of all future site bonding, maintenance/reclamation obligations upon completion of the earn-in and acquisition of Meridian Beartrack Co. at the end of the fifth year of the agreement (Sept. 29, 2022);
Payment of the greater of $6 (U.S.) per ounce of gold resource or $15 (U.S.) per oz of gold reserve on conclusion of the seventh anniversary of the of agreement (Sept. 29, 2024);
1.5-per-cent net smelter royalty, 0.5 per cent of which is capped at $2-million (U.S.).
About Revival Gold Inc.
Revival Gold is a growth-focused gold exploration and development company. The company has the right to acquire a 100-per-cent interest in Meridian Beartrack, owner of the former producing Beartrack gold project located in Lemhi county, Idaho. Revival Gold also owns rights to a 100-per-cent interest in the neighbouring Arnett gold project.
In addition to its interests in Beartrack and Arnett, the company is pursuing other gold exploration and development opportunities, and holds a 51-per-cent interest in the Diamond Mountain phosphate project, located in Uintah county, Utah.
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