Business
Sixty North Gold Mining Negotiates Proposed Amendments to Earn-in Option Agreement to Acquire All of New Discovery Mines Ltd.'s Interest in the Mon Gold Property, NWT
Vancouver, British Columbia--(Newsfile Corp. - April 7, 2022) - Sixty North Gold Mining Ltd. (CSE: SXTY) (FSE: 2F4) (OTC Pink: SXNTF) (the "Company" or "Sixty N
About this update from Sixty North Gold Mining Ltd
[{"type":"text","content":" Vancouver, British Columbia--(Newsfile Corp. - April 7, 2022) - Sixty North Gold Mining Ltd. (CSE: SXTY) (FSE: 2F4) (OTC Pink: SXNTF) (the \"Company\" or \"Sixty North Gold\"): Sixty North Gold is pleased to announce that it has agreed to an accelerated earn-in of a 100% interest in the past producing Mon Gold Mine with all related equipment, supplies, licenses and permits, through a further amending agreement with New Discovery Mines Ltd. (\"NDML\"). Under the existing agreement the Company has a right to earn an 80% interest in the Mon Gold Property by incurring Expenditures of at least $6.0 million on the Mon Gold Property (of which $5.7 million have already been incurred), and NDML's remaining 20% carried interest can be acquired in exchange for common shares of the Company equal to 25% of the total issued and outstanding shares (post-dilution). Additional common shares of Sixty North Gold will be issued to maintain NDML's twenty-five percent (25%) interest in the total issued and outstanding shares of Sixty North Gold until the total expenditures specifically for the exploration and development of the A-Zone on the Mon Gold Property reached a total of $6.0 million. The agreement has been revised to the issuance to NDML of a total of 49,511,367 common shares, representing 25.48% of the then issued and outstanding shares of the Company (the \"Share Consideration\"). The Company will own 100% interest in the Mon Gold Property (the \"Acquisition\"), subject only to an underlying 2.0% net smelter returns royalty, with minimum annual advance royalties (to be credited against future royalties payable). The Share Consideration will be subject to escrow restrictions permitting the release of 10% to NDML upon closing of the Acquisition, and further releases from escrow in instalments of 15% of the original number of shares every quarter for a period of 18 months. John Campbell, Chairman and CFO of the Company, states, \"The acceleration of the earn-in and subsequent acquisition of a 100% interest of the property, including all mining equipment, infrastructure and supplies is transformative for Sixty North Gold. We appreciate New Discovery Mines' progress on the property, and look forward to a more direct involvement in gold production from the Mon A-Zone. It also clearly aligns New Discovery Mine's interests with the shareholders of...