VANCOUVER, BC --(Marketwired - November 28, 2016) - SolidusGold Inc. (TSX VENTURE: SDC) is providing an update on the acquisition by the Company of the Northumberland Project in Nevada for US$20 million from Newmont USA Limited (the "Northumberland Acquisition") and certain of its affiliates ("Newmont") and the concurrent private placement of subscription receipts (the "Financing"), as previously announced on September 15, 2016.
While the Financing has received robust interest from both retail and institutional investors, both the price of gold and prevailing equity market conditions have deteriorated substantially since the announcement of the Northumberland Acquisition. As a result, the Company has not obtained the necessary support to complete the Financing and does not expect to be in a position to complete the Northumberland Acquisition within the 75 day period provided for in the purchase agreement.
The Company is in advanced discussions with Newmont to extend the outside date of the Northumberland Acquisition. However, there can be no assurance that such an agreement will be reached. The Company continues to explore financing alternatives including discussions with a potential strategic financial partner.
The Company is also pleased to announce that Sorin Posescu has been appointed Chief Executive Officer as well as to the Board of Directors of the Company. Rick Van Nieuwenhuyse, who was appointed to the Chief Executive Officer position on an interim basis, will continue as Chairman of the Board. Mr. Posescu is a professional geologist with more than 20 years of experience in natural resources exploration and development. Mr. Posescu has worked for major to junior resource companies throughout Europe, USA and Canada, including NovaGold, OMV-Petrom and Brixton Metals.
Rick Van Nieuwenhuyse, Chairman, commented: "Working towards an extension is critical as it will allow for both financing and strategic alternative efforts to continue. Sorin Posescu has been instrumental as a consultant to the Company in the identification and negotiation of the Northumberland Acquisition, and I look forward to working alongside Sorin in his new capacity as CEO."
