VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 27, 2017) - Precipitate Gold Corp. (the "Company" or "Precipitate") (TSX VENTURE:PRG) is pleased to announce it has received notice from the TSX Venture Exchange ("TSXV") of the approval of the previously announced mineral Property Option Agreement between the Company and Golden Predator Mining Corp. ("Golden Predator") (TSX VENTURE:GPY) granting Golden Predator the rights to acquire a 100% interest in certain mineral claims known as the Reef property located immediately adjacent to the northern boundary of Golden Predator's 3 Aces Project in the Upper Hyland River area of the southeast region of the Yukon Territory. See the Company's news release dated February 13, 2017 or the Company's website for full details of the Agreement.
As per the terms of the Agreement, Golden Predator has delivered initial payment obligations due upon receipt of TSXV approval, including $400,000 in cash, 100,000 common shares of Golden Predator, and 100,000 warrants exercisable into common shares of Golden Predator for a period of 3 years from the date of issuance at an exercise price of $1.50 per share.
To complete the Option Golden Predator must complete staged payments totalling $1,050,000 in cash, approximately $900,000 in Golden Predator common shares, and 800,000 three-year warrants exercisable for the purchase of additional Golden Predator shares.
Golden Predator has granted to Precipitate a 2% net smelter royalty ("NSR") royalty on claims that are not subject to a pre-existing royalty, and a 1% NSR royalty on claims that are subject to a pre-existing royalty. Golden Predator may purchase 25% of the Company's NSR royalty at any time for a purchase price of $1,000,000 and an additional 25% of the Company's NSR royalty at any time for a purchase price of $1,500,000 (and aggregate of $2,500,000 to buy back 50% of the NSR held by the Company).
The common shares issued pursuant to this agreement will be subject to a four-month hold period in accordance with applicable securities laws.
About Precipitate Gold:
Precipitate Gold Corp. is a mineral exploration company focused on exploring and advancing its mineral property interests in the Tireo Gold Trend of the Dominican Republic. The Company also maintains assets in northern British Columbia and southeast Yukon Territory and is actively evaluating additional high-impact property acquisitions with the potential to expand the Company's portfolio and increase shareholder value.
Additional information can be viewed at the Company's website www.precipitategold.com.
