Business
iMetal Successfully Renegotiates and Amends NSR Agreements at Gowganda
VANCOUVER, BC / ACCESSWIRE / April 6, 2021 / iMetal Resources Inc. (TSX.V:IMR ) (OTC PINK:...
About this update from Imetal Resources Inc.
[{"type":"text","content":"iMetal Successfully Renegotiates and Amends NSR Agreements at GowgandaVANCOUVER, BC / ACCESSWIRE / April 6, 2021 / iMetal Resources Inc. (TSX.V:IMR) (OTC PINK:ADTFF) (FRANKFURT:A7V2) (\"iMetal\" or the \"Company\") is pleased to announce amendments to the residual Net Smelter Return (NSR) royalties to the underlying property vendors for the Gowganda West, Mosher Lake and Ghost Mountain properties:Gowganda West NSR remains at 3% with the Company now holding the option to buy back fifty percent reducing the NSR to 1.5% at any time up to production for $1,000,000;Mosher Lake NSR remains at 2% with the Company now holding the option to buy back fifty percent reducing the NSR to 1.0% at any time up to production for $1,000,000;Ghost Mountain NSR remains at 3% with the Company now holding the option to buy back fifty percent reducing the NSR to 1.5% at any time up to production for $1,000,000;\"Bringing the NSR's into line with industry norms is an important step forward with the development of the Gowganda project,\" commented iMetal CEO Saf Dhillon. \"The 3 year buy back provision in the original agreements had expired, leaving the Company saddled with 2% to 3% NSR's with no avenue to reduce them prior to the amendment,\" he continued. \"Also the Riverside technical team continues to make progress compiling, reviewing and interpreting the Gowganda exploration data, already generating strong drill targets for the upcoming drilling program,\" he concluded.Each of the four underlying property vendors has agreed to modify the existing NSR agreements to the new terms in exchange for a cash payment of $5,000 and the issuance of 150,000 common shares of iMetal to each. The Company is at arms-length from each of the property vendors, and all shares issued to the vendors will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws. Completion of the issuance of the shares remains subject to the approval of the TSX Venture Exchange.About Gowganda WestThe Gowganda West property covers approximately 147 sq km in the Shining Tree volcano-sedimentary succession of the southwestern Abitibi Greenstone Belt contiguous to the north and west of Aris Gold Corp.'s (formerly Caldas Gold Corp.) Juby Gold deposit, a series of four mineralized alteration zones along the Tyrrell Shear Zone. Gold mineralizati...