Precipitate Gold announced that it has closed the transaction previously announced with Everton Resources.
Image: Pueblo Grande Project in Dominican Republic. Photo: Courtesy of Precipitate Gold Corp.
The Company has now completed the transfer of title to fully acquire ownership of all of Everton’s Dominican Republic exploration concessions, consisting of Pueblo Grande Project, adjoining Barrick’s and Goldcorp’s world-class Pueblo Viejo gold-silver mine, and the Ponton Project located approximately 30 kilometers (“km”) east of Pueblo Grande (see news release dated October 24, 2018).
Jeffrey Wilson, Precipitate President & CEO, stated, “We are pleased to have completed our due diligence, satisfied all requirements, and attained the necessary government and regulatory approvals to close this transaction and acquire a 100% interest in this exciting new landholding adjacent to one of the largest gold-silver mining operations in the world. During our due diligence period the Company’s technical team has been actively plotting up proposed first phases of work within certain priority target areas and we expect work activities on the ground to commence soon. In preparation for the completion of this transaction, as reported in recent months, the Company has bolstered its Advisory team with the addition of former President and Executive Director of the Barrick-Pueblo Viejo mining operation, Mr. Mejico Angeles-Lithgow and increased its technical understanding of the projects through the engagement of consulting geologist, Dr. Stewart Redwood. With the acquisition now completed, Precipitate and its team are ready to begin a first phases of work.”
The Pueblo Grande’s immediate exploration priority will be the area directly west of Barrick’s mining pits, where a notable geophysical magnetic high coincides with an equally substantial area of advanced argillic lithocap alteration. This highly prospective lithocap target area measuring approximately 2.5 km by 3.0 km has seen little systematic exploration and will be the focus of initial phases of work.
In accordance with the terms of the Agreement, for 100% title to Everton’s three Dominican exploration concessions totalling 9,583 hectares, along with an extensive geochemical, geophysical, geological and drill database, Precipitate delivers to Everton the following:
CDN $25,000 cash;
Seven million common shares of Precipitate subject to sale legend restrictions for up to 3 years, expiring as follows:
10% (700,000 shares) with resale legend expiring 6 months from the date of issue;
10% (700,000 shares) with resale legend expiring 12 months from the date of issue;
10% (700,000 shares) with resale legend expiring 18 months from the date of issue;
15% (1,050,000 shares) with resale legend expiring 24 months from the date of issue;
15% (1,050,000 shares) with resale legend expiring 30 months from the date of issue; and
40% (2,800,000 shares) with resale legend expiring 36 months from the date of issue
Additional stock payment conditions and details of pre-existing advanced-stage or mining-related commitments, including an underlying NSR to a third party can be found in the Company’s news release dated October 24, 2018.mpany Press Release.