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Precipitate Receives US$5.0M Cash and 3% NSR from Barrick for Relinquishing Non-Core Areas of Pueblo Grande Project in Amendment to Ongoing Exploration Earn-In Agreement
Vancouver, British Columbia--(Newsfile Corp. - May 13, 2022) - Precipitate Gold Corp.  (...
About this update from Precipitate Gold Corp.
[{"type":"text","content":"Precipitate Receives US$5.0M Cash and 3% NSR from Barrick for Relinquishing Non-Core Areas of Pueblo Grande Project in Amendment to Ongoing Exploration Earn-In AgreementVancouver, British Columbia--(Newsfile Corp. - May 13, 2022) - Precipitate Gold Corp. (TSXV: PRG) (OTCQB: PREIF) (the \"Company\" or \"Precipitate\") is pleased to announce that the Company and Barrick Gold Corporation (\"Barrick\") have entered into an amendment (the \"Amendment\") to the existing exploration earn-in agreement (the \"Earn-in Agreement\") in respect of the Company's Pueblo Grande Project (the \"Project\"), located immediately adjacent to Barrick's world class Pueblo Viejo mining operation in the Dominican Republic, pursuant to which Precipitate has agreed to relinquish or reduce certain portions of select exploration concessions within the Project (the \"Subject Areas\") for a cash consideration of US$5,000,000 and the granting to Precipitate of a 3% net smelter return (\"NSR)\" royalty over the Subject Areas.In consideration for Precipitate's relinquishment or reduction of the Subject Areas, Barrick:Paid Precipitate US$5,000,000 in cash (approximately $6,400,000 Canadian) upon entering into the Amendment;Agreed to grant Precipitate a 3% NSR over the Subject Areas (with no re-sale restrictions or rights of first refusal or rights of first offer to Barrick);Agreed to commence, within three months of receipt of a drilling permit, the final 1,200 metres of a minimum 3,200 metre condemnation drilling program within the Subject Areas (2,500 metres already completed);Agreed that if, following the completion of the above-mentioned condemnation drilling, Barrick determines that the extraction of mineralization within a certain portion of the Subject Area is economically justifiable, Barrick will transfer the mining rights in such area back to Precipitate at no cost, at which time such area will be reinstated as part of the Project under the Earn-in Agreement and the NSR will be amended to remove any royalties with respect to such area; andAgreed that it will provide advance notice to Precipitate if, at any time prior to the 10-year anniversary of the Amendment, Barrick intends to relinquish the mining rights over all or a portion of the Subject Areas and will work cooperatively with Precipitate to facilitate the transfer of such mining rights t...