VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 18, 2017) - ML Gold Corp. (TSX VENTURE:MLG)(FRANKFURT:XOVN.F) ("ML Gold" or the "Company") reports it has entered into a binding letter of intent (the "Letter of Intent") with Accend Capital Corporation ("Accend"), a capital pool company listed on the TSX Venture Exchange (TSX VENTURE:ADP.H). The Letter of Intent provides for Accend to acquire (the "Transaction") 100% of the Company's Block 103 iron ore property ("Block 103" or the "Property").
The Block 103 Property comprises a series of mineral licenses, located in the Labrador Trough, Newfoundland and Labrador, approximately 30 kilometres northwest of the mining town of Schefferville, Quebec. Block 103 was subject to extensive exploration and geological work by the Company from 2011 to 2013, including 28,000 metres of drilling in 115 drill holes.
In consideration for the sale of Block 103, the Company will receive a series of cash payments and share issuances from Accend as follows:
| Closing: | A cash payment of $200,000 and the issuance of 12,000,000 common shares of Accend (the "Consideration Shares"). | |
| Two-year Anniversary of Closing: | A cash payment of $800,000 (the Company will be entitled to receive 10% of the gross proceeds of any financing completed by Accend following closing of the Transaction as a credit towards this payment). | |
| Completion of Pre-Feasibility Study on the Property: | A cash payment of $5,000,000, or at the election of Accend an equivalent value of common shares of Accend. | |
| Completion of Bankable Feasibility Study on the Property: | A cash payment of $15,000,000 or, at the election of Accend, an equivalent value of common shares of Accend. |
The Consideration Shares will be subject to the terms of a voluntary pooling arrangement made in accordance with the policies of the TSX Venture Exchange (the "Exchange"). In addition, the Consideration Shares will be subject to a four-month hold period from the date of their issue.
Adrian Smith, President of ML Gold commented, "This sale monetises ML Gold's interest in the Block 103 Property while continuing to benefit from exposure to the iron ore space as significant shareholders, further capitalizing on the advancement and development of the project. This allows ML Gold to focus on our Palmetto Gold Project in Nevada and our Later and Aspen Copper Gold Projects in British Columbia."
The Letter of Intent calls on the parties to enter into a definitive agreement and provides for a due diligence period ending May 31, 2017. The Transaction is expected to act as Accend's "Qualifying Transaction" as that term is defined in the policies of the Exchange.
The Transaction and associated transactions are subject to regulatory approval including the approval of the Exchange.
ABOUT ML GOLD CORP.
ML Gold Corp. is a Canadian listed Company, focused on creating shareholder value through discoveries and strategic development of mineral properties in Canada and the United States.
For additional information please visit the Company's website at www.mlgoldcorp.com.
