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Reduction in Royalty Burden on Lewis Gold Project Exercise of Warrants by Gold Standard Ventures Corp. Appointment to Board of Directors
(via Thenewswire.ca) Vancouver / TheNewswire / British Columbia June 16, 2016 - Batt...
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[{"type":"text","content":"Reduction in Royalty Burden on Lewis Gold Project Exercise of Warrants by Gold Standard Ventures Corp. Appointment to Board of Directors(via Thenewswire.ca)\n\n \nVancouver / TheNewswire / British Columbia June 16, 2016 - Battle Mountain Gold Inc. (\"Battle Mountain\" or the \"Company\") (TSX-V: BMG) advises that further to our news release of May 6, 2016, Gold Standard Ventures Corp. (\"GSV\") has informed the Company that GSV intends to increase its strategic investment in the Company by exercising all of GSV's 5,240,717 warrants (the \"Warrants\") to acquire an additional 5,240,717 common shares of Battle Mountain (the \"Warrant Shares\") at a price of CAD $0.37 per share for an aggregate purchase price of CAD $1,939,065 (the \"Warrant Purchase Price\"). The consent of the TSX Venture Exchange (the \"TSXV\") to the creation of GSV as a new control person of Battle Mountain, a pre-condition to the exercise of the Warrants, has now been received following Battle Mountain's disinterested shareholder approval of GSV as a control person. GSV has advised that it expects to exercise the Warrants within the next 5 to 7 days.\n\n \n \nThe gross proceeds from the exercise of the Warrants will be used by Battle Mountain to partially fund a buy-down (the \"Royalty Buy-Down\") of the existing royalty for gold and silver (the \"Royalty\") on Battle Mountain's Lewis Gold Project in Lander County, Nevada, U.S.A. from 5% to 3.5% and the conversion of the Royalty from a gross royalty to a net smelter returns royalty. GSV has also agreed to advance an additional CAD $416,170 to Battle Mountain (the \"Additional Advance\") to fund the balance of the Royalty Buy-Down. GSV has advised that the Warrant Purchase Price and the Additional Advance totalling USD $1,850,000 (translated as CAD $2,355,235) will be funded by GSV through a combination of USD $925,000 cash and 532,864 common shares of GSV at a deemed price of US$1.7359 (C$2.21) per share to be paid by GSV directly to the arm's length holder of the Royalty. Subject to acceptance of the TSXV, Battle Mountain has agreed to settle the Additional Advance from Gold Standard through the issuance of a further 885,468 common shares of Battle Mountain (the \"Additional Advance Shares\") at a fair value of C$0.47 per share.\n\n \n \nBattle Mountain is advised by GSV that it currently owns 10,481,435 com...