Toronto, Ontario / March 6, 2018 / JMN Wire / Goldplay Exploration Ltd. (TSXV: GPLY - the “Company” or “Goldplay”), is pleased to announce a strategic financing agreement (“Agreement”) with Sandstorm Gold Ltd. (TSX: SAND, NYSE: SAND) (“Sandstorm”).
$900,000 Private Placement
Pursuant to a non-brokered private placement, Sandstorm will purchase 3,000,000 Goldplay common shares at a price of $0.30 per share (“Private Placement”), on terms identical to Goldplay’s recently closed and oversubscribed CAN$2.25 million equity financing (see press release dated February 22, 2018). The proceeds received from this Private Placement will be used for the exploration and development of Goldplay’s strategic exploration portfolio in the Rosario Mining District and for general working capital. The Private Placement is subject to certain conditions including, but not limited to, the approval of the TSX Venture Exchange. On closing, shares issued in the Private Placement will represent 8.8% of Goldplay’s outstanding shares.
1% Royalty/Option Agreements
Goldplay and Sandstorm have also entered into an option agreement and royalty agreement for total purchase proceeds of up to US$2,000,000 + CAN$100,000. Pursuant to these agreements, Sandstorm has paid Goldplay CAN$100,000 for the option to purchase a 1% net smelter return (NSR) royalty on Goldplay’s El Habal Project and for a 1% royalty on 4 concessions adjacent to the El Habal Project (the “Nearby Concessions”). All of these properties are located in the Rosario Mining District, Sinaloa, Mexico. Under the terms of the option agreement, Sandstorm can elect to exercise its option and to purchase up to a total 1% NSR royalty on the El Habal Project by paying Goldplay US$1,000,000 per 0.5% NSR, for a total option exercise price of US$2,000,000 for a 1% NSR.
Management believes Sandstorm’s investment is a significant milestone for Goldplay, further validating the Company’s exploration strategy in the Rosario Mining District, Sinaloa, Mexico. Together with Goldplay’s recently closed and oversubscribed equity financing, the Company is well financed to advance its exploration program at the El Habal Project and Nearby Concessions in the highly prospective Rosario Mining District and to continue to seek opportunities to enhance the Company’s property portfolio.
Marcio Fonseca, Goldplay’s Chief Executive Officer, commented: “We are very pleased to conclude this strategic financing agreement and royalty/option arrangement with Sandstorm. Proceeds from Sandstorm’s strategic investment will further enable Goldplay to advance exploration on its projects and realize value for our shareholders."
ON BEHALF OF THE BOARD OF DIRECTORS:
Mr. Marcio Fonseca, President & CEO Goldplay Exploration Ltd.
Telephone: +1 416.499.0747
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
About Goldplay Exploration Ltd.
Goldplay Exploration Ltd. (TSX-V: GPLY) is an exploration-stage company with strategic exploration portfolio in the Rosario Mining District-Sinaloa, Mexico. Goldplay is currently focused on advancing exploration activities including drilling for its 100%-owned El Habal Project).
Goldplay’s flagship El Habal Project is a low sulphidation epithermal exploration stage project. The Project is located in the vicinity of the historical Au-Ag Rosario Mine (“Rosario Mine”). The Rosario Mine reportedly operated for 250 years. Goldplay’s team has over 30 years’ experience with senior roles in exploration, financing and development in the mining industry, including over 10 years of extensive exploration experience in the Rosario Mining District, leading to previous successful discoveries. A current NI 43-101 report on The El Habal Project is filed on SEDAR.
Disclaimer for Forward-Looking Information
This press release contains forward-looking statements and information that are based on the beliefs of management and reflect the Company’s current expectations. When used in this press release, the words "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such variations thereon or comparable terminology are intended to identify forwardlooking statements and information. The forward-looking statements and information in this press release includes information relating to the completion of the Private Placement, use of proceeds, and exercise of the 1% NSR option. Such statements and information reflect the current view of the Company. Risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forwardlooking statements. THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE GOLDPLAY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
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