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South Atlantic Gold Options Big Kidd Project for $4.8 million and 2% NSR
(TheNewswire) Kelowna, British Columbia – TheNewswire - Nove...
About this update from South Atlantic Gold, Inc.
[{"type":"text","content":"South Atlantic Gold Options Big Kidd Project for $4.8 million and 2% NSR\n \n \n (TheNewswire)\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Kelowna, British Columbia –\n \n \n \n \n TheNewswire -\n \n \n \n \n November 9, 2022 -\n \n \n \n SOUTH ATLANTIC GOLD INC. (TSXV:SAO)\n \n (“\n \n South Atlantic”\n \n or the\n“\n \n Company”\n \n ) is pleased to\nannounce that it has entered into an option agreement to divest its\n100% interest of the Big Kidd Project, British Columbia, to Quetzal\nCopper Limited (“Quetzal”), a British Columbia, corporation for a\ntotal consideration of $4.8 million and a 2% net smelter royalty\n(“NSR”) upon completion of the required milestones.\n \n \n \n Option Terms\n \n \n \n \n \n A cash payment totaling $150,000 to South Atlantic, subject to a\nQualifying Financing by Quetzal ($10,000 due immediately, with the\nbalance due within a period of up to 60 days, commencing November\n4\n \n th\n \n );\n \n \n \n \n $200,000 per year on or before the 1\n \n st\n \n , 2\n \n nd\n \n , 3\n \n rd\n \n and 4\n \n th\n \n anniversary of the option\nsigning date (November 4\n \n th\n \n , 2022);\n \n \n \n \n At the 5-year anniversary of the signing, Quetzal will make a cash\npayment of $350,000 or if Quetzal is publicly listed on a recognized\nstock exchange in North America it may elect to issue common shares\nwith a market value of $350.000 to South Atlantic;\n \n \n \n \n Further Milestone payments\n \n \n \n \n \n oo\n \n Following the completion of 40,000 meters of\ndrilling at Big Kidd, Quetzal will make a payment of $300,000 in cash\nor shares, at its election (if listed on a recognized stock exchange\nin North America);\n \n \n \n \n \n oo\n \n Following the filing of a Pre-Feasibility\nStudy on Big Kidd, Quetzal will make a cash payment of $1,200,000 in\ncash or shares, at its election (if listed on a recognized stock\nexchange in North America);\n \n \n \n \n \n oo\n \n Following the filing of a Feasibility Study on\nBig Kidd, Quetzal will make a payment of $2,000,000 (if listed on a\nrecognized stock exchange in North America);\n \n \n \n \n \n \n Net Smelter Royalty\n \n \n \n \n \n oo\n \n South Atlantic Gold will retain a net smelter\nroyalty of 2% over asset, of which 1% may be bought back by Quetzal\nfor $2 million. In the ev...