Business
Waraba Gold Closes Acquisition of Mali Gold Project
Toronto, Ontario--(Newsfile Corp. - January 21, 2021) - Waraba Gold Limited (CSE: WBGD) (the "Corporation") is pleased to announce that, further to the press re
About this update from Waraba Gold Limited
[{"type":"text","content":" Toronto, Ontario--(Newsfile Corp. - January 21, 2021) - Waraba Gold Limited (CSE: WBGD) (the \"Corporation\") is pleased to announce that, further to the press release dated January 7, 2021, it has closed its acquisition (the \"Acquisition\") of all of the issued and outstanding shares of 1273795 B.C. LTD. (\"Mali HoldCo\"). Transaction Details The Acquisition was effected by way of a three-cornered amalgamation involving a wholly-owned subsidiary of the Corporation and Mali HoldCo (the \"Amalgamation\"). Pursuant to the terms of the Acquisition, the Corporation issued an aggregate of 25,690,000 shares of the Corporation (\"Waraba Shares\") to shareholders of Mali HoldCo at a deemed priced at $0.1875, being equal to the maximum discount allowed by the Canadian Securities Exchange at time of issuance, representing the aggregate consideration of $4,867,500. Description of Mali HoldCo and its Business Mali HoldCo is registered in British Columbia and holds a 75% interest in Gonka Gold Mali SARL (\"GGM\"). GGM has entered into an agreement with Fokolore Mining SARL (the \"Purchase Agreement\") to acquire the research permit to explore for gold in the Maligonga-Est (Cercle de Kéniéba) region of Mali (the \"Region\"), issued by the Government of Mali on June 10, 2016 under number 2016-2006/MM-SG (as renewed pursuant to ordinance number 2019-3557/MMP-SG on October 11, 2019, (the \"Mining Permit\"). Under the terms of the Purchase Agreement, the parties must receive ministerial consent to the transfer of the Mining Permit to GGM and Mali HoldCo must pay a total consideration of US$2,500,000, of which US$250,000 has already been paid and an additional US$1,000,000 is due by the end of March 2021, and the remaining US$1,250,000 can be settled with shares of the Corporation. In addition, GGM will be required to pay an additional US$1,000,000 upon proof, to an internationally recognized standard, that the area covered by the Mining Permit holds at least 1,000,000 ounces of gold; and an additional US$1,000,000 upon proof, to an internationally recognized standard, that the area covered by the Mining Permit holds at least 1,500,000 ounces of gold. As certain directors and officers of the Company received Waraba Shares in connection with the acquisition, it is considered a related party transaction for the purposes of Multilateral Instrument ...