Business
TriStar Gold Completes US$8 million Agreement with Royal Gold
SCOTTSDALE, Ariz., Aug. 06, 2019 (GLOBE NEWSWIRE) -- TriStar Gold Inc. (TSX-V:TSG) is pleased to announce it has entered into a royalty agreement with Royal Gol
About this update from Tristar Gold Inc.
[{"type":"text","content":" SCOTTSDALE, Ariz., Aug. 06, 2019 (GLOBE NEWSWIRE) -- TriStar Gold Inc. (TSX-V:TSG) is pleased to announce it has entered into a royalty agreement with Royal Gold, Inc. (Royal) for an investment by Royal or its affiliate of US$ 7.5 million as contemplated in the TriStar press release on May 28, 2019. In addition to the US$500,000 announced previously, the material components of the royalty agreement are: TriStar and Royal have entered into a royalty agreement for total consideration of US$ 7.5 million: TriStar will sell and grant to Royal a newly created 1.5% NSR royalty (incrementally earned pro-rata with the funding schedule) on the CDS property TriStar will grant to Royal 19,640,000 common share purchase warrants (to be issued pro-rata with the funding schedule), each entitling Royal to purchase one common share of TriStar Gold Inc. at an exercise price of C$ 0.25 per common share for a period of five years. Funding Schedule. First payment, US$4.5 million, this payment has been made. Second payment, US$1.5 million, by November 30, 2019, Third payment, US$1.5 million, by March 31, 2020 The second and third payments assume TriStar can demonstrate (amongst other things) that drilling is advancing substantially according to the agreed upon work program to complete a prefeasibility study (PFS) due in 4th quarter 2020. The transaction proceeds will be used to complete a PFS for the CDS gold project, to advance permitting activities, and for general corporate purposes. “This is a phenomenal time for TriStar,” says Nick Appleyard, TriStar’s President and CEO. “We’ve grown the resource seven-fold in the past 30 months, and we’re excited to now be funded through the PFS which is aimed at establishing mineral reserves for the first time and presenting a blueprint for a profitable mine. To this end, we’re focusing 20,000m of infill drilling in Esperança South; following the PFS we’ll turn our attention to expanding resources and reserves elsewhere on our mineral concessions. I also want to take this opportunity to thank Royal Gold for recognizing the potential of CDS.” Board of Directors Mark Jones has decided to stand down as Executive Chairman, effective immediately, but will continue as a member of the board and in the role of non-executive Chairman. TriStar would also like to thank Mark for his many years...