Business
Red Pine Exploration Enters into Royalty Agreement with Franco-Nevada for Consideration of C$6,750,000
TORONTO, Aug. 29, 2023 (GLOBE NEWSWIRE) -- Red Pine Exploration Inc. (TSXV: RPX, OTCQB: RDEXF) ("Red Pine" or the "Company") is pleased to announce that it has
About this update from Rpx Gold Inc.
[{"type":"text","content":" TORONTO, Aug. 29, 2023 (GLOBE NEWSWIRE) -- Red Pine Exploration Inc. (TSXV: RPX, OTCQB: RDEXF) (\"Red Pine\" or the \"Company\") is pleased to announce that it has entered into a net smelter return royalty agreement (the “Royalty Agreement”) with Franco-Nevada Corporation (“Franco-Nevada”) for the purchase and sale of a 1.5% net smelter return royalty (the “Royalty”) on its Wawa Gold Project (“Wawa”) located in Ontario for immediate cash proceeds to the Company of C$6,750,000. Proceeds from the sale of the Royalty will be used for continued exploration and advancement of Wawa, and ongoing working capital. Quentin Yarie, President & CEO of Red Pine commented, “We are thrilled to welcome Franco-Nevada as a new partner into the Red Pine and Wawa story. Red Pine has been fortunate to have strong support from existing partners, and the addition of Franco-Nevada, a true leader in the gold space, brings further validation to the Wawa Gold Project. On the back of this non-dilutive financing, and with over C$10M in cash on hand, we are well positioned to deliver on our exploration goals, including ongoing infill and expansion drilling, an updated mineral resource estimate defining the open pit exploration target, and a potential preliminary economic assessment.” Paul Brink, President & CEO of Franco-Nevada commented, “We are excited to be supporting Red Pine in its advancement of the Wawa Gold Project. We believe that the Michipicoten Greenstone Belt has great geological potential and are pleased to be partnering with Red Pine with the objective of advancing a new mine to production in Ontario.” Pursuant to the Royalty Agreement, Franco-Nevada has been granted a one time option, exercisable within 30 business days of Red Pine providing notice to Franco-Nevada confirming both (i) a board-approved construction decision at Wawa, and (ii) completion of a feasibility study at Wawa, to purchase an additional 0.5% net smelter return royalty (the “Additional Royalty”) at a cost of 1.0x the net present value of the Additional Royalty, which is to be calculated based on the value of the mineral reserves within the Wawa feasibility study, after applying a 5% discount rate, and utilizing the then-prevailing analyst consensus commodity price forecasts. Advisor and Counsel Haywood Securities Inc. acted as exclusive financial advisor to Red Pi...