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Scorpio Gold Announces Completion of Waterton Buyout to Eliminate Senior Secured Debt and Acquire a 100% Interest in the Mineral Ridge Property
VANCOUVER, British Columbia, March 06, 2019 (GLOBE NEWSWIRE) -- Scorpio Gold Corporation (“Scorpio Gold” or the “Company”) (TSX-V: SGN) is pleased to announce t
About this update from Scorpio Gold Corporation
[{"type":"text","content":" VANCOUVER, British Columbia, March 06, 2019 (GLOBE NEWSWIRE) -- Scorpio Gold Corporation (“Scorpio Gold” or the “Company”) (TSX-V: SGN) is pleased to announce that further to the Company’s press release dated January 28, 2019, the Company has completed the Waterton Buyout (as defined below), as a result of which, among other things, the Company’s senior secured debt owing to an affiliate of Waterton Global Resources Management (“Waterton”) in the amount of US$6,103,562 has been extinguished, and the Company now holds a 100% interest in the Mineral Ridge project, located in Nevada. Brian Lock, the interim CEO and a director of the Company, states, \"This is a great day for Scorpio Gold, having eliminated its US$6-million senior secured debt with Waterton in exchange for an upfront payment of US$3-million in cash, and increasing its ownership of the Mineral Ridge Gold Mine to 100%. Scorpio Gold is finalizing the previously-announced US$6-million convertible debenture financing. We can now focus our efforts on re-engaging with lenders who had previously expressed interest in funding our new processing facility at the Mineral Ridge project. This will allow us to capture the value in the gold reserves contained in the heap leach pad and unmined portions of the mine. We see potential to increase those resources by further exploration within and outside our area of operations. Our operating team at Mineral Ridge has proved its excellence over the past eight years and once financed, will build and operate the new process facility with an expected mine life of at least seven years.\" Pursuant to the Waterton Buyout: (i) the loan advanced from Waterton Precious Metals Fund II Cayman, LP (the “Lender”) to Scorpio Gold pursuant to the terms of a senior secured credit agreement (the “Credit Agreement”) among the Company, its subsidiaries and the Lender, which was originally announced in the Company’s press release dated August 17, 2015, has been fully extinguished and the Credit Agreement has been terminated (ii) the gold and silver supply agreement dated May 18, 2011 among the Company, Scorpio Gold (US) Corporation (“Scorpio Gold US”), Mineral Ridge Gold, LLC (“Mineral Ridge Gold”) and an affiliate of the Lender has been terminated; and (iii) the Company has acquired the 30% membership interest of Elevon LLC (“Elevon”) in...