Sabre Gold Advises of Victoria Gold Receivership
Rhea-AI Summary
Sabre Gold Mines Corp. (TSX: SGLD) (OTCQB: SGLDF) has announced that it expects to be impacted by the receivership of Victoria Gold Corp. In September 2023, Sabre Gold sold its subsidiary Golden Predator Mining Corp., which held the Brewery Creek property and other mineral assets, to Victoria for $13.5 million. While $8.5 million was paid in cash at closing, the remaining $5 million was to be paid in installments on September 14, 2024, and September 14, 2025.
Due to Victoria's receivership, Sabre Gold does not expect to receive the $3 million payment due on September 14, 2024. The company is uncertain about receiving any future payments from Victoria. Sabre Gold plans to pursue legal remedies to recover the remaining payments, which are unsecured obligations of Victoria.
Positive
- Received $8.5 million in cash from the sale of Golden Predator Mining Corp. to Victoria Gold Corp.
- Pursuing legal remedies to recover remaining payments from Victoria Gold Corp.
Negative
- Unlikely to receive the $3 million payment due on September 14, 2024, from Victoria Gold Corp.
- Uncertainty regarding the receipt of the remaining $2 million payment due on September 14, 2025
- Remaining payments from Victoria Gold Corp. are unsecured obligations
News Market Reaction – SGLDF
In the trading session that priced this news, SGLDF declined 4.63%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Toronto, Ontario--(Newsfile Corp. - August 15, 2024) - Sabre Gold Mines Corp. (TSX: SGLD) (OTCQB: SGLDF) ("Sabre Gold" or the "Company") wishes to advise that it expects to be affected by the receivership of Victoria Gold Corp. ("Victoria"). Victoria has announced that the Ontario Superior Court of Justice (Commercial List) has granted an order appointing PricewaterhouseCoopers Inc. as the receiver and manager of Victoria including all of its property, assets and undertakings.
In September 2023, Sabre Gold sold Golden Predator Mining Corp., then a wholly owned subsidiary of Sabre Gold, which indirectly held a
(i)
(ii)
Given the receivership of Victoria, the Company does not expect to receive the
The remaining payments are unsecured obligations of Victoria. It is unclear at this time, whether or not, the Company will receive any amounts in respect of the remaining payments and, if so, when such amounts would be paid. Sabre Gold intends to pursue whatever legal remedies are available with respect to receipt of the remaining payments.
About Sabre Gold Mines Corp.
Sabre Gold is a near-term gold producer in North America which holds
Copperstone has approximately 300,000 ounces of gold in the Measured and Indicated categories, and approximately 197,000 ounces of gold in the Inferred category. Additionally, Copperstone has considerable existing operational infrastructure as well as significant exploration upside. Sabre Gold is led by an experienced team of mining professionals with backgrounds in exploration, mine building and operations.
For further information please visit the Sabre Gold Mines Corp. website: (www.sabre.gold).
Andrew Elinesky
CEO and President
416-904-2725
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking information under Canadian securities legislation including statements concerning the Company's views on the impacts of the receivership of Victoria Gold Corp. ("Victoria") on the payments due from Victoria in connection with its purchase of Golden Predator Mining Corp. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements. These uncertainties and risks include but are not limited to: the results of the receivership, the value of the assets of Victoria, the ability of the receiver to realize on the assets of Victoria, the amount of secured debt of Victoria, the costs associated with the receivership, the amount of unsecured debt of Victoria. Risks and uncertainties about Sabre Gold's business are more fully discussed in the Company's disclosure materials, including its annual information form and MD&A, filed with the securities regulatory authorities in Canada and available at www.sedarplus.ca and readers are urged to read these materials. Sabre Gold assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements unless required by law.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/220135