Mr. Alastair Still reports
GOLDMINING REPLACES EXISTING NET PRODUCTION ROYALTY ON THE CACHOEIRA PROJECT WITH NET SMELTER ROYALTY WITH BUY-BACK OPTION
BRI Mineracao Ltda., a wholly owned subsidiary of Goldmining Inc., has completed a transaction to replace the remaining 1.33-per-cent net production royalty on the company's Cachoeira project in Brazil, with a 0.5-per-cent net smelter return royalty, including a buyback right to repurchase half of the NSR royalty. Pursuant to the agreement with the royalty counterparty, BRI paid in Brazilian Reais the equivalent of US$100,000 in cash and delivered 324,723 common shares of the Company to the counterparty in settlement of a previously announced claim for pre-production royalties by the counterparty. Under the terms of the buy-back, the Company has a period of seven years to elect to purchase half of the NSR (0.25%) upon payment in Brazilian Reais the equivalent of US$250,000.
Alastair Still, CEO of Goldmining, commented, "Since acquiring the Cachoeira project in 2012, we have completed various initiatives including engineering and environmental studies and negotiating more attractive royalty structures that can support future development.This transaction enhances the value of our Cachoeira Project by replacing an existing net production royalty that included an annual pre-production payment, with an NSR royalty on more favourable terms including a buy-back provision to acquire half of the NSR and no pre-production payments.It is yet another example of how we will continue our disciplined approach of unlocking value from our portfolio of gold and gold-copper projects located throughout the Americas."
About Goldmining Inc.
Goldmining Inc. is a public mineral exploration company focused on the acquisition and development of gold assets in the Americas. Through its disciplined acquisition strategy, Goldmining now controls a diversified portfolio of resource-stage gold and gold-copper projects in Canada, U.S.A., Brazil, Colombia, and Peru.The Company also owns 20 million shares of Gold Royalty Corp. (NYSE American: GROY).
We seek Safe Harbor.
© 2021 Canjex Publishing Ltd. All rights reserved.