Sage Enters Into Agreement to Acquire Remaining 40% Interest in Clavos
09 Diciembre 2013 - 5:00AM
Marketwired
Sage Enters Into Agreement to Acquire Remaining 40% Interest in
Clavos
TORONTO, ONTARIO--(Marketwired - Dec 9, 2013) - Sage Gold Inc.
(TSX-VENTURE:SGX) ("Sage") has entered into an agreement to acquire
the remaining 40% interest in the Clavos Gold property ("Clavos")
located in Timmins, Ontario from St Andrew Goldfields Ltd. ("St
Andrew") (TSX:SAS).
As part of the agreement, Sage is required to pay St Andrew
$1,000,000 in cash, and enter into a two percent (2%) Net Smelter
Return Royalty ("Royalty"). In accordance with the agreement, Sage
may at any time purchase one-half of the Royalty by providing St
Andrew written notice as well as a cash payment of $1,000,000,
which will thereby reduce the Royalty rate to one percent (1%).
On completion of this agreement Sage will own 100% of Clavos,
subject to certain pre-existing royalty interests. The closing of
the transaction is subject to Sage fulfilling certain conditions of
which include the requirement of Sage to securing financing prior
to April 30, 2014, which is also subject to regulatory
approval.
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, which can be found
on the corporate website at www.sagegoldinc.com.
Highlights of the Study include:
- Net Present Value ("NPV") of $23.2MM (pre-tax) and $12.6MM
(after-tax) at an 8% discount
- Internal Rate of Return of 71% (pre-tax) and 47% (after-tax)
based on USD$1500/oz of gold
- Estimated annual production of approximately 20,000 oz. of gold
per year
- Initial Capex of $14.1 million
- 2.0 year payback from start of production with 7 year mine
life
- Average head grade for gold ranging from 6.45 g/t in Year 1 to
4.37 g/t in Year 7
- Project is fully permitted to initiate mining.
Nigel Lees, President and CEO stated, "We are very pleased with
this proposed transaction with our partner, St Andrew. By
consolidating our interest, Sage believes that the Clavos project
can be financed on a favourable basis."
Qualified
Person
R. Ritchie, P.Eng, an Independent Qualified Person as defined by
NI 43-101. Mr. Ritchie visited the Clavos JV deposit property on
several occasions between August to October, 2012, and provides
overall responsibility for the technical content of this Press
Release which includes the mining study CAPEX and OPEX cost
estimates and the PEA. Mr. Ritchie has read and consents to the
disclosure of the technical content of this press release.
The Company has agreed to issue 400,000 shares as debt
settlement to a vendor which is subject to TSX-V approval.
This PEA is deemed to be reliable at +/- 50% by Mr. R. Ritchie,
Qualified Person for the PEA. Mineral resources are not mineral
reserves and do not have demonstrated economic viability. The
preliminary assessment is preliminary in nature, as it includes
Inferred mineral resources that are considered too speculative
geologically to have the economic considerations applied to them
that would enable them to be categorized as mineral reserves, and
there is no certainty that the preliminary economic assessment will
be realized.
SAGE is a mineral exploration and development company which has
primary interests in near -term production and exploration
properties in Ontario. Its main properties are the Clavos Gold mine
in Timmins and the Lynx deposit and other exploration properties in
the Beardmore-Geraldton Gold Camp. Technical reports and
information relating to the properties can be obtained from the
System for Electronic Document Analysis and Retrieval (SEDAR)
website at www.sedar.com and www.sagegoldinc.com.
This release was prepared by management of the Company and Mr.
R. Ritchie who takes full responsibility for its contents. Neither
TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this
release.
This news release contains certain "Forward-Looking Statements"
within the meaning of Section 21E of the United States Securities
Exchange Act of 1934, as amended and "Forward Looking Information"
within the meaning of applicable Canadian securities
legislation.Some forward looking statements and forward looking
information contained in this release are forward-looking and,
therefore, involve uncertainties or risks that could cause actual
results to differ materially. Such forward-looking statements
include comments regarding mining, the completion of the
transaction and milling operations, mineral resource statements and
exploration program performance. Factors that could cause actual
results to differ materially include metal price volatility,
economic and political events affecting metal supply and demand,
fluctuations in mineralization grade, geological, technical, mining
or processing problems, exploration programs and future results of
exploration programs, future profitability and production. The
Company disclaims any obligation to update forward-looking
statements.
Sage Gold Inc.Nigel LeesPresident and
C.E.O.416-204-3170416-260-2243Sage Gold Inc.Mike
O'BrienManager/Investor
Relations416-204-3170416-260-2243www.sagegoldinc.com
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