Golden Arrow Reports On Joint Ventures, Including Amended Option on Mogote Project for Cash and Equity and First Drilling at Caballos Project
Rhea-AI Summary
Golden Arrow Resources (OTCQB: GARWF) has announced two significant developments in its joint ventures. First, the company amended its option agreement with Mogotes Metals for the Mogote Copper-Gold Project in Argentina. Under the new terms, Mogotes Metals can acquire 100% interest for CAD$1 million in cash and equity, plus shares in Mogotes Metals and a 1.5% NSR royalty.
Additionally, Hanaq Argentina has begun diamond drilling at Golden Arrow's Caballos Copper-Gold Project in La Rioja Province. This marks the first-ever drill testing of the property's targets, with an initial program of 3 holes totaling approximately 1,000 metres. The project is strategically located at the intersection of the Maricunga Copper-Gold Belt and the El Indio Gold-Silver Belt, 23 kilometres north of the Josemaria Project.
AI-generated analysis. Not financial advice.
Positive
- Secured CAD$1 million in combined cash and equity from Mogote Project option
- Retains 1.5% NSR royalty on Mogote Project
- First-ever drilling commenced at Caballos Project
- Minimum exploration expenditures already completed at Mogote Project
Negative
- If Mogotes fails to complete final payment, company retains only 80% project interest instead of 100%
- Lock-up period restricts immediate liquidity of received Option Shares
News Market Reaction – GARWF
On the day this news was published, GARWF gained 7.02%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Nikolaos Cacos, Golden Arrow's Vice President Corporate Development commented, "We are very pleased to further monetize our Mogote Project in a way that increases both the short-term value and long-term potential returns. We will be able to deploy the cash assets to advance exploration at our active projects in
Golden Arrow is also pleased to report that Hanaq Argentina S.A. ("Hanaq") has secured permits and commenced diamond drilling at the Company's Caballos Copper-Gold Project in
Brian McEwen, Golden Arrow VP Exploration and Development stated, "We are pleased to see advanced exploration permitting and drilling at Caballos, which reflects the recent positive shift in support for exploration from the authorities in
Mogotes Metals Amending Agreement Details
To exercise the Amended Option:
- Mogotes Metals will pay
$550,000 - Mogotes Metals shall purchase such number of units of Company (each, a "Unit") on the Initial Closing Date through an investment (the "Investment") of
$450,000 $0.05 $450,000 $0.08 - Mogotes Metals will issue common shares of Mogotes Metals (each, an "Option Share") to the Company as follows:
- 10,714,285 Option Shares on the Initial Closing Date; and
- such number of additional Option Shares (the "Deferred Option Shares") having a value of
$1,500,000
- 10,714,285 Option Shares on the Initial Closing Date; and
- Mogotes Metals will grant to the Company on the Final Closing Date a
1.5% net smelter returns royalty in respect of the Project.
Pursuant to the Amending Agreement, the Company agrees not to transfer the Option Shares (the "Lock-up"), without the prior consent of Mogotes Metals, until such shares are released in accordance with the following schedule:
- on the date that is six months following the Final Closing Date, fifty percent (
50% ) of the Option Shares will be released from the Lock-up; and - the remaining fifty percent (
50% ) of the Option Shares will be released from the Lock-up in equal monthly installments over the subsequent six-month period, such that all Option Shares will be fully released from the Lock-up on the 12-month anniversary of the Final Closing Date.
In the event Mogotes Metals does not issue the Deferred Option Shares (or pay the Final Amount in cash) to the Company by the first anniversary of the Initial Closing Date (the "Option Deadline"), and provided Mogotes Metals has satisfied its other obligations under the Amending Agreement, Mogotes Metals will acquire an
Completion of the Transaction, including the Private Placement and the issuance of the Option Shares by Mogotes Metals, is subject to the approval of the TSXV.
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 copper-gold-iron-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 Amending Agreement, the exercise of the Amended Option and the timing thereof, the TSXV's approval of the Transaction; the gross 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.
View original content to download multimedia:https://www.prnewswire.com/news-releases/golden-arrow-reports-on-joint-ventures-including-amended-option-on-mogote-project-for-cash-and-equity-and-first-drilling-at-caballos-project-302373227.html
SOURCE Golden Arrow Resources Corporation