Golden Arrow Announces Initial Closing of Option on Mogote Project and Private Placement
Rhea-AI Summary
Golden Arrow Resources (OTCQB: GARWF) has completed the initial closing of an option agreement with Mogotes Metals for the Mogote Copper-Gold Project in San Juan Province, Argentina. The transaction includes:
- $550,000 cash payment to Golden Arrow
- Private placement of 9,000,000 units at $0.05 per unit, raising $450,000
- Issuance of 10,714,285 Mogotes Metals shares to Golden Arrow
To acquire 100% project interest, Mogotes Metals must issue additional shares valued at $1.5 million within one year. Upon final closing, Golden Arrow will receive a 1.5% net smelter royalty, with Mogotes having the option to purchase 0.5% for $2 million. The private placement units include one share and one warrant exercisable at $0.08 for three years.
Positive
- Immediate cash injection of $1M ($550K cash + $450K private placement)
- Potential additional $1.5M in share value within one year
- Secured 1.5% net smelter royalty on future production
- Strategic investment creates new partnership while maintaining project exposure
Negative
- Divestment of 100% project ownership interest
- Future payment dependent on Mogotes Metals share price performance
- Dilution of existing shareholders through private placement
News Market Reaction – GARWF
In the trading session that priced this news, GARWF gained 0.79%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
TSX Venture Exchange (TSX-V): GRG
Frankfurt Stock Exchange (FSE): G6A
OTCQB Venture Market (OTCQB): GARWF
At the Initial Closing,
- Mogotes Metals paid
$550,000 - Mogotes Metals purchased 9,000,000 units of the Company (each, a "Unit") by way of a private placement (the "Private Placement"), at a price of
$0.05 $450,000 $0.08 - Mogotes Metals issued 10,714,285 common shares of Mogotes Metals (each, a "Mogotes Share") to the Company.
The Company will use the proceeds of the Private Placement for general working capital purposes.
To acquire a
Additionally, on the Final Closing Date, Mogotes Metals will grant the Company a
Mogotes Metals is an arm's length party and no finder's fees were paid by the Company in connection with the transaction.
Early Warning Report
Pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bids and Insider Reporting Issues ("NI 62-103"), Mogotes Metals has informed the Company that it will be filing an early warning report pursuant to NI 62-103. Mogotes Metals acquired 9,000,000 Units in the Private Placement. Prior to the completion of the Private Placement, Mogotes Metals did not own or control any securities of the Company. Following the completion of the Private Placement, Mogotes Metals owns and controls 9,000,000 Shares and 9,000,000 Warrants, representing approximately
The Units were acquired for investment purposes. Mogotes Metals may, depending on market and other conditions, or as future circumstances may dictate, increase or decrease some or all of the existing or additional securities it holds or will hold, or may continue to hold its current position. In the future, Mogotes Metals will evaluate its investment in the Company from time to time and may, based on such evaluation and the market conditions and other circumstances, increase or decrease its holdings through market transactions, private agreements, or otherwise.
The disclosure in this news release is being issued in accordance with NI 62-103 in connection with the filing of an early warning report by Mogotes Metals on the Company's SEDAR+ profile at www.sedarplus.ca. All the information in this section of the news release was provided to the Company by Mogotes Metals. A copy of the early warning report of Mogotes Metals can be obtained by contacting Allen Sabet, President and Chief Executive Officer of Mogotes Metals (217 Queen Street West, Suite 401,
About Golden Arrow:
Golden Arrow is a mining exploration company with a successful track record of creating value by making precious and base metal discoveries and advancing them into exceptional deposits.
Golden Arrow is actively exploring its flagship property, the advanced San Pietro iron oxide-copper-gold-cobalt project in
The Company is a member of the Grosso Group, a resource management group that has pioneered exploration in
ON BEHALF OF THE BOARD
"Joseph Grosso"
_______________________________
Mr. Joseph Grosso,
Executive Chairman, President and CEO
Neither the TSXV nor its Regulation Services Provider (as that term is defined in policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. All statements, other than statements of historical fact, that address activities, events or developments the Company believes, expects or anticipates will or may occur in the future, including, without limitation, statements about the terms of the Option, the issuance of Additional Shares or cash payments in lieu thereof, the exercise of the Option and the timing thereof; the use of proceeds under the Private Placement, the Company's plans for its mineral properties; the Company's business strategy, plans and outlooks; the future financial or operating performance of the Company are forward-looking statements.
Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements and, even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: risks and uncertainties related to the ability to obtain, amend, or maintain licenses, permits, or surface rights; risks associated with obtaining necessary regulatory approvals (including the TSXV's approval); risks associated with technical difficulties in connection with mining activities; and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations. Actual results may differ materially from those currently anticipated in such statements. Readers are encouraged to refer to the Company's public disclosure documents for a more detailed discussion of factors that may impact expected future results. The Company undertakes no obligation to publicly update or revise any forward-looking statements, unless required pursuant to applicable laws.
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SOURCE Golden Arrow Resources Corporation