Scorpio Gold (SGN-V) Sept 15, '14 has become entitled to receive a further 1.25 million common shares of Gold Standard Ventures Corp. in connection with Scorpio's sale of the Pinon property, located in Elko county, Nevada. The Bonus Share consideration was triggered as a result of Gold Standard having completed an initial mineral resource estimate on the Pinon property including indicated mineral resources of 423,000 troy ounces of gold and inferred mineral resources of 1,022,000 troy ounces of gold. The Bonus Shares must be issued within 30 days of Gold Standard's receipt of the technical report on the foregoing mineral estimate. Scorpio Gold closed the sale of the Pinon property to an affiliate of Gold Standard in March of 2014. As announced in the Company's March 5, 2014 news release, highlights of the Pinon sale transaction are as follows:
- Gold Standard agreed to pay Scorpio Gold a total of CAD$8,500,000 in cash and issue Scorpio Gold 5,500,000 common shares in its capital stock - completed.
- Of the CAD$8,500,000 cash consideration, CAD$6,000,000 was paid at closing, and CAD$2,500,000 is to be paid within one year after closing - due in March 2015. -- Subject to certain conditions, Scorpio Gold was also entitled to receive bonus consideration of the 1,250,000 Bonus Shares of Gold Standard if a level of at least 1,000,000 ounces of mineral resources was established on the Pinon property while Gold Standard holds its interest therein - triggered by the above-noted mineral resource estimate.
- Subject to certain conditions, Scorpio Gold may also receive bonus cash consideration of between CAD$1,500,000 and CAD$3,000,000 on a sliding scale if the Pinon property or Gold Standard are sold for an aggregate transaction value of between Cdn.$100,000,000 and Cdn.$300,000,000 or greater.
Peter J. Hawley, CEO comments: "We are very pleased that Gold Standard has completed an initial resource estimate on the Pinon deposit, and that geological modelling has outlined additional untested targets that may allow for resource expansion. Upon receipt of the 1,250,000 Bonus Shares triggered by completion of the resource estimate, Scorpio Gold will hold an aggregate of 6,750,000 common shares of Gold Standard, providing the Company's shareholders with continued exposure to the Pinon property, as well as Gold Standard's rapidly advancing Railroad property. The combination of these two properties creates a large and consolidated land package in Nevada's premier gold camp, the Carlin Trend."
Scorpio Gold's CEO, Peter J. Hawley, PGeo, is a Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the content of this release.
Peter J. Hawley, CEO |
