Gossan Reopens Discussions to Collect $750,000 Indebtedness
Winnipeg, Manitoba--(Newsfile Corp. - June 22, 2017) - Gossan Resources Limited (TSXV: GSS) (FSE: GSR) is pleased to announce that Claim Post Resources Inc. has completed a private placement of unsecured convertible debentures that raised a total of approximately $3.1 million (the "Offering").
Claim Post currently owes Gossan over $750,000 in overdue payments and interest, pertaining to its Seymourville Silica Sand Project, for the purchase of 9 quarry leases from Gossan under the terms of the Manigotagan purchase and sale agreement.
Claim Post has announced that the net proceeds of its Offering will be used for the early repayment of existing shareholder loans owed to the Company, the final payment to a third party on a quarry lease on the Company's "Seymourville Silica Sand Project" and for general working capital purposes.
Gossan has reopened discussions with Claim Post to collect payment of its overdue indebtedness and simplification of the existing royalty agreement.A satisfactory outcome would lead to the transfer on title of the 9 Manigotagan Quarry Leases from Gossan to Claim Post.
Under the terms of the current Manigotagan purchase and sale agreement semi-annual advance royalty payments of $50,000 each are payable as of June 18th and December 18th of each year.All frac sand produced, sold and paid from the nine Manigotagan leases is subject to a $1.00 per tonne production royalty payable quarterly and all other products are subject to a $0.50 per tonne production royalty.Although the royalty is solely payable on production from the Manigotagan leases, the agreement also provides for a minimum production royalty from both the Manigotagan and the adjacent Seymourville Property held by Claim Post, based on their relative remaining mining reserves of frac sand with Gossan's Manigotagan Property having a deemed minimum mineable reserve of 6 million tonnes of frac sand.Claim Post can acquire one-half of Gossan's production royalty interest for $1.5 million after making all of the required property payments.
Gossan Resources Limited has acquired a new exploration property in the zinc-rich polymetallic Sturgeon Lake Greenstone Belt in northwestern Ontario which has been permitted for a drill program this winter.It is also pursuing other zinc-prospective properties.Gossan has a broadly diversified legacy portfolio of properties hosting gold, platinum group and base metals, as well as the specialty and minor metals, vanadium, titanium, tantalum, lithium and chromium.The Company also has a large deposit of high-purity, magnesium-rich dolomite and various financial interests in a frac sand deposit. All of Gossan's mineral exploration and development properties are located in Manitoba and northwestern Ontario. The Company trades on the TSX Venture and the Frankfurt/Freiverkehr&Xetra Exchanges and currently has 33,170,400 common shares outstanding.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
For further information, please bookmark www.gossan.ca or contact:
Douglas Reeson, Chairman & CEO
Gossan Resources Limited
Tel: (416) 533-9664
E-Mail: info@gossan.ca
Kathy Ringland, Office Manager
Tel : (204) 943-1990
NEWSRELEASE17-04