Terraco Gold (TEN-V) closes Spring Valley royalty transaction.
www.terracogold.com
133.8 million o/s
$1.8 million cash
July 29, 2013 - News Release
Terraco Gold Corp., further to its press release dated April 22, 2013, has closed its third royalty transaction on the Spring Valley project, which included a $1-million (U.S.) cash infusion. "We are pleased to complete this third royalty transaction on the Spring Valley project located in Pershing county, Nevada, which is a Barrick-led joint venture with Midway Gold Corp. Collectively, our three royalty transactions now give Terraco, either by direct ownership or option, up to a 3-per-cent net smelter returns royalty, on this developing project. Terraco management believes that the valuation of this NSR will grow as the project moves towards production and we are pleased that Barrick has continued its accelerated rate of earn-in with Midway on the Spring Valley project. In 2013, Barrick completed its $30-million (U.S.) spending requirement for 60-per-cent interest in the project and notified Midway of its intention to spend an additional $8-million (U.S.) to earn 70 per cent of the Spring Valley project. We are also excited, in these tough economic and market times that although we are issuing 800,000 shares of Terraco to the royalty vendor for the royalty assets, we received a $1-million (U.S.) cash infusion without issuing additional shares or debt, thus no substantial shareholder dilution. In the last 19 months we have delivered to shareholders, despite unfavourable market conditions, a growing gold-focused asset base and brought $6-million (U.S.) in creative funding to the company where our share structure has been left relatively intact. We are very proud of this," stated Todd Hilditch, president and chief executive officer of Terraco.
The company continues to maintain a debt-free balance sheet and at closing of this transaction has in excess of $1.8-million in cash and marketable securities.
All of the requirements to close, including TSX Venture Exchange acceptance of the transaction, have been completed.
We seek Safe Harbor. |
