Business
Aura Completes Acquisition of Gold Road Project from Para
Road Town, British Virgin Islands and Vancouver, British Columbia--(Newsfile Corp. - March 30,...
About this update from Soma Gold Corp.
[{"type":"text","content":"Aura Completes Acquisition of Gold Road Project from ParaRoad Town, British Virgin Islands and Vancouver, British Columbia--(Newsfile Corp. - March 30, 2020) - Aura Minerals Inc. (TSX: ORA) (\"Aura\") and Para Resources Inc. (TSXV: PBR) (WKN: A14YF1) (OTC: PRSRF) (\"Para\") are pleased to announce that, further to the joint press releases issued by Aura and Para on February 10, 2020 and March 9, 2020, Aura completed the purchase of all of the issued and outstanding shares of Para's wholly-owned subsidiary Z79 Resources, Inc. (\"Z79\") (the \"Share Purchase\") on March 27, 2020. Z79 owns through Gold Road Mining Corp. (\"GRMC\") the Gold Road Mine located in Arizona (the \"Gold Road Project\") and various options to acquire parcels of land adjacent to the Gold Road Project, among other things.In addition to completing the Share Purchase, Aura has also advanced US$4 million to GRMC for the development and restart of the Gold Road Project (the \"Subscription\"). Aura will advance an additional US$4 million to GRMC within one month of the date of closing. As a result of the Subscription, Aura, through Z79, now owns substantially all of the equity interests in GRMC. The Share Purchase was completed for nominal cash consideration of US$1 and the assumption of liabilities owing to PPG Arizona Holdings LP (\"PPG\"), an affiliate of Pandion Mine Finance, LP, under an amended and restated pre-paid forward gold purchase agreement (the \"A&R PPF\"). Pursuant to the terms of the A&R PPF, Z79 and GRMC shall pay to PPG approximately US$35 million in cash pursuant to scheduled payments, unless Z79 and GRMC elect to pre-pay the outstanding indebtedness owing under the A&R PPF on or prior to the end of 12 months from the date of closing, in which case Z79 and GRMC shall pay approximately US$24 million.Forward-Looking InformationThis press release contains \"forward-looking information\" and \"forward-looking statements\", as defined in applicable securities laws (collectively, \"forward-looking statements\") which include, but are not limited to, statements with respect to the future advancement of funds by Aura to GRMC and the activities, events or developments that Aura and Para expect or anticipate will or may occur in the future. Known and unknown risks, uncertainties and other factors, many of which are beyond the ability of Aura...