Once the properties covered by the joint venture have been transferred to MAS Gold, the LRSGJV Agreement will be terminated and MAS Gold will become the sole owner of the properties subject to that agreement
MAS Gold Corp. (“MAS Gold” – TSX-V:MAS) announces that, in conjunction with the completion of its previously announced work program on the North Lake Gold property (the “Property”), MAS Gold has delivered to Golden Band Resources Inc. (“Golden Band”) notice that Golden Band’s joint venture interest has been diluted to a royalty position in the joint venture properties, as well as a formal request that Golden Band transfer its ownership interest in all the properties subject to the La Ronge South Gold Joint Venture (“LRSGJV”) Agreement (the “Agreement”) to MAS Gold.
Once the properties covered by the joint venture have been transferred to MAS Gold, the LRSGJV Agreement will be terminated and MAS Gold will become the sole owner of the properties subject to that agreement. The termination will give MAS Gold the leverage to move forward in an orderly and time efficient manner in its exploration and resource development activities.
Ron Netolitzky, President and CEO of MAS Gold states “We are extremely pleased with the progress that we have made on our La Ronge Gold Belt properties. Our 2019 exploration programs were designed to test new targets and to confirm historical information on our holdings, and the results have certainly not disappointed.”
See MAS Gold’s press releases on June 25, 2019, September 24, 2019 and November 12, 2019 announcing the results of the 2019 exploration and metallurgical programs.
“We feel we are holding some of the premier properties in an overlooked gold region in Canada” Ron continues. “The La Ronge Gold Belt has a long and storied history of gold production. We look forward to further advancing our properties in the next 12 months. In this regard, the recently completed channel sampling program at North Lake will have results coming out shortly.”
Pursuant to the terms of the LRSGJV Agreement, once a party’s interest is diluted below 10%, that party is automatically converted to a 2.5% net smelter returns royalty (“NSR”) position and the properties revert to the non-diluted party. The NSR may be bought out at any time for a cash payment of $1,000,000 in total.
With MAS Gold funding 100% of 2019 exploration work, including the 2019 drilling at Point and North Lake, the most recent work program on the Preview-North Property, and the metallurgical work related to the Greywacke North, North Lake and Point deposits, Golden Band’s interest was diluted below 10%. As Golden Band has not responded to any of MAS Gold’s dilution notices or request to transfer its ownership interest, MAS Gold will be commencing proceedings to enforce the dilution of Golden Band. MAS Gold expects to resolve this matter before the start of the summer exploration season this year.
Source: Company Press Release