Sage Gold and St Andrew Goldfields have amended the purchase agreement dated the 3rd of December, 2013 by extending the closing date from April 30th, 2014 to August 29th, 2014.
Under the agreement SAS agreed to sell and Sage agreed to purchase the remaining 40% interest in the Clavos gold property for $1.0 million in cash together with a 2% Net Smelter Return Royalty ("Royalty"). This agreement is subject to certain conditions, including financing, and on closing Sage will own 100% of the gold property in Timmins, Ontario.
Sage Gold President and CEO Nigel Lees commented, "Clavos is one of the few gold projects that is fully permitted for production in Canada and Timmins is one of the largest and best historical gold camps.
The Company remains optimistic that its current discussions with project and other financiers will be successful."
Sage has a NI 43-101 mineral resource estimate for Clavos which includes Indicated mineral resources of 1,258,400 tonnes at 4.81 g/t Au totaling 194,600 ounces of gold and Inferred mineral resources of 796,000 tonnes at 4.7 g/t Au representing 120,000 ounces.
These mineral resources are reported at a base case cut-off grade of 2.75 g/t Au and individual assays have been capped at 60 g/t Au.
Sage announced the completion of a Preliminary Economic Assessment ("PEA") for Clavos on March 01, 2013.