Mr. Robert Archer reports
NEWRANGE GOLD CLOSES SALE OF YARUMALITO PROJECT IN COLOMBIA
Further to its news release dated Nov. 4, 2019, Newrange Gold Corp. has closed the sale of
a 100-per-cent interest in the Yarumalito gold project, located in central Colombia, to GoldMining Inc.
"We are pleased to have closed this sale with GoldMining, as it now paves the way for us to conclude the sale of Newrange's subsidiary and remaining projects in Colombia, as announced on June 5 and Sept. 5, 2019," commented Robert Archer, Newrange's chief executive officer. "By monetizing our Colombian assets, we are providing significant non-dilutive funds for exploration on the company's flagship Pamlico project in Nevada."
Pursuant to the agreement, a wholly owned subsidiary of GoldMining has acquired the Yarumalito project and related assets from a wholly owned subsidiary of Newrange. Total consideration paid by GoldMining to Newrange under the transaction was: (i) $1.2-million in common shares of GoldMining; and (ii) $200,000 in cash. The issue price of the share consideration was based on the volume-weighted average price of the GoldMining shares on the Toronto Stock Exchange for the five trading days prior to closing, or $1.07. In total, 1,118,359 shares were issued in this part of the transaction.
The GoldMining shares issued under the transaction are subject to a four-month-and-one-day hold period and certain additional resale restrictions, pursuant to the terms of the agreement.
Newrange will retain a 1-per-cent net smelter return royalty, which can be purchased by GoldMining at any time before the completion of a feasibility study on the project for total consideration of $1-million.
The transaction is subject to final stock exchange approvals.
About Newrange Gold Corp.
Newrange is a precious metals exploration and development company focused on near-to-intermediate-term production opportunities in favourable jurisdictions, including Nevada and Colorado. With numerous drill intercepts of near-surface oxide gold mineralization to 340 grams per metric tonne gold, the company's flagship Pamlico project is poised to become a significant new Nevada discovery. Focused on developing shareholder value through the exploration and development of key projects, the company is committed to building sustainable value for all stakeholders.
We seek Safe Harbor.
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