VANCOUVER, BC--(Marketwired - August 02, 2017) - Golden Predator Mining Corp. (TSX VENTURE: GPY) (OTCQX: NTGSF) (the "Company" or "Golden Predator") is pleased to announce that it has entered into a property option agreement (the "Agreement") with Taku Gold Corp. (CSE: TAK) ("Taku") pursuant to which the Company has granted to Taku the option to acquire the Company's 100% interest in the Sonora Gulch Property in Yukon's White Gold District, in exchange for shares of Taku and a 1% net smelter return royalty. The Agreement follows the previously announced1 sale of additional non-core assets located in the White Gold District from the Company to Taku. Golden Predator is focused on the high-grade gold 3 Aces Project in Southeastern Yukon; the sale of the White Gold assets provides an opportunity to maximize value from the non-core assets held by the Company.
"This transaction with Taku allows our shareholders to receive a royalty and retain an interest in the attractive prospect of Sonora Gulch, and the White Gold District, while we focus our efforts on our 3 Aces Project as it has district-scale potential for multiple high-grade orogenic gold deposits," said Janet Lee-Sheriff, Chief Executive Officer of Golden Predator. "We have a unique opportunity at 3 Aces with a 357 km2 land package, featuring at least 6 mineralized areas within and along favorable stratigraphic and structural zones that extend along trend for more than 35 km. Our current 40,000 m drill program is focused on the road and bridge accessible Central Core area, host to numerous high-grade gold in quartz veins."
For more information on the 3 Aces Project please visit: www.goldenpredator.com/projects/3-aces/
Under the terms of the Agreement, the Company has received the initial share issuance of 4,500,000 common shares of Taku. In order to exercise the option, Taku will be required to issue additional common shares to the Company as follows:
- On the date that is 12 months from the closing date, 3,500,000 common shares of Taku, or that number of Taku common shares equal in value to $1,400,000 determined at a price per share equal to the volume weighted average price of Taku common shares ("VWAP") for the 10 consecutive trading days immediately prior to such anniversary date if the VWAP is greater than $0.40; and
- On the date that is 24 months from the closing date, 3,000,000 common shares of Taku, or that number of Taku common shares equal in value to $1,200,000 determined at a price per share equal to the VWAP for the 10 consecutive trading days immediately prior to such anniversary date if the VWAP is greater than $0.40.
In addition, Golden Predator retains a 1% NSR royalty on the property.
Sonora Gulch Project
The Sonora Gulch Project is 259 mineral claims covering approximately 5,414 hectares located in the Yukon's White Gold District. The Sonora Gulch property is located 110 kilometres (km) northwest of the town of Carmacks along the Casino Trail which extends to the Casino property located to the northwest. The trail currently provides winter access only. The property is centrally located within the Dawson Range Mineral Belt which includes many known deposits in central Yukon, including, the Coffee and White Gold deposits in the northern portion of the belt, the Casino deposit 45 km to the northwest and Klaza and Freegold Mountain area deposits to the south.
Golden Predator, through its predecessor, Northern Tiger Resources, explored the property from 2007-2011 and intersected gold in various zones of mineralization which have potential for expansion.
Early Warning
Pursuant to the Agreement, the Company acquired 4,500,000 common shares of Taku on August 1, 2017. Immediately prior to this acquisition the Company owned 5,250,000 common shares of Taku, representing approximately 14.98% of Taku, and 1,750,000 warrants of Taku. Following the acquisition, the Company owns an aggregate of 9,750,000 common shares of Taku, representing approximately 24.65% of the issued and outstanding common shares of Taku. The Company would own 11,500,000 common shares of Taku, representing approximately 27.85% of the issued and outstanding common shares of Taku on a partially diluted basis, assuming the exercise of 1,750,000 warrants and that no further common shares of Taku have been issued. The foregoing acquisition has resulted in an approximate 9.67% change in the Company's ownership on a non-diluted basis.
Pursuant the Agreement, the Company was issued the foregoing securities at a deemed transaction price of $0.20 based on the closing price of the Taku shares on the TSX Venture Exchange as at July 31, 2017, representing an aggregate value of $900,000 in consideration for the option. The securities acquired will be held for investment purposes. The Company may, depending on market and other conditions, increase or decrease its beneficial ownership of Taku's securities, whether in the open market, by privately negotiated agreements or otherwise, subject to a number of factors, including general market conditions and other available investment and business opportunities. This information respecting the Company's share acquisition is issued pursuant to Multilateral Instrument 62-104 and a report respecting the above acquisition will be filed with the applicable securities commissions using the Canadian System for Electronic Document Analysis and Retrieval (SEDAR) and will be available for viewing at www.sedar.com.
Golden Predator Mining Corp.
Golden Predator Mining Corp. is a well-financed Canadian gold mineral exploration company expanding its surface discoveries, at the 3 Aces Project in Canada's Yukon, through focused drilling. The 3 Aces property is a high-grade gold in quartz project with an exploration program underway that includes a 40,000 m drilling program, sampling, trenching and bulk sampling to define and interpret the project. Golden Predator operates under a Class 4 Mining Land Use Permit and has a MOU for Exploration with the Kaska Nation, as represented by the Liard First Nation and the Ross River Dena Council. The 3 Aces Project features year-round accessibility on the Cantung Mine Road. The Company also holds the Brewery Creek Project in Canada's Yukon.
