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Scorpio Gold Announces Letter of Intent to Acquire Altus Gold
Vancouver, British Columbia--(Newsfile Corp. - May 25, 2023) - Scorpio Gold Corporation  (T...
About this update from Scorpio Gold Corporation
[{"type":"text","content":"Scorpio Gold Announces Letter of Intent to Acquire Altus GoldVancouver, British Columbia--(Newsfile Corp. - May 25, 2023) - Scorpio Gold Corporation (TSXV: SGN) (\"Scorpio Gold\" or the \"Company\") is pleased to announce that it has entered into a binding letter of intent dated May 18, 2023 (the \"LOI\") setting out the terms of a proposed arm's length acquisition (the \"Transaction\") by the Company of all of the issued and outstanding shares of Altus Gold Corp. (\"Altus Gold\"), a private mining issuer with two mineral exploration projects in Esmeralda County, Nevada referred to as the Northstar property (the \"Northstar Project\") and the historic Vanderbilt exploration project (\"Vanderbilt Project\"), both adjacent to Scorpio Gold's Mineral Ridge Mine (\"Mineral Ridge\"). If completed, the Transaction would consolidate the entire 12-mile ridge, resulting in total land package of 10,652 ha of mineral rights, and 931 ha of surface rights in the prolific Walker Lane mineral district.\"We are very excited to become involved in an advanced gold mining and exploration company in the world's number one mining jurisdiction for mining, as recently surveyed by the Fraser Institute1. Scorpio's two strategic projects, both of which are past producing mines, have near-term production potential with robust economics in the context of the current gold price, alongside their considerable exploration upside,\" said Michael Townsend, CEO of Altus Gold. \"This acquisition will provide Scorpio the vehicle to consolidate the known Mineral Ridge exploration potential with the addition of the Northstar and Vanderbilt areas which could ultimately add additional resources to the Mineral Ridge portfolio. The acquisition will also provide the Company the opportunity to realign its management structure to best utilize its officers' talents for the future growth of the Company. I welcome Michael Townsend and the Altus team to Scorpio and look forward to working with them to provide additional growth opportunities for Scorpio Gold in the future,\" said Chris Zerga, CEO of Scorpio Gold.Terms of AcquisitionUnder the terms of the LOI, Scorpio Gold proposes to acquire all the outstanding shares of Altus Gold in exchange for issuing to the shareholders of Altus Gold 16,900,000 post-consolidated Scorpio Gold common shares, having an aggregate deemed val...