Mr. Mike Mutchler reports
AMARILLO GOLD ANNOUNCES COMPLETION OF THE SALE OF AN NSR ROYALTY TO ROYAL GOLD FOR USD $10.8 MILLION
Amarillo Gold Corp. has completed the previouslyannounced sale of a perpetual 1.75-per-cent net smelter return royalty on the Mara Rosa gold project to RG Royalties LLC, a wholly owned subsidiary of Royal Gold Inc., for $10.8-million (U.S.).
The proceeds of the sale are expected to be used to repay a portion of the gold-linked credit facility that the company entered into on July 31, 2014, and to finance continuing exploration and development activities in respect of the Mara Rosa project.
Mike Mutchler, president and chief executive officer of Amarillo Gold, commented: "We are extremely pleased to have completed the sale of the royalty. It represents a compelling way for Amarillo to realize significant cash proceeds that will further strengthen our balance sheet and help fund the continued advancement of the Mara Rosa project."
About Amarillo Gold Corp.
Amarillo is developing a highly economic, open-pit gold resource at its Mara Rosa project in the mining-friendly jurisdiction of Goias state in Brazil.
Mr. Mutchler, president and chief executive officer of the company, is a qualified person as defined by National Instrument 43-101 guidelines. He has reviewed and approved the scientific and technical disclosure in this news release.
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