Business
Sun River Gold Commits to Financing the Re-Processing of the Historic Tailings at El Oro
(via TheNewswire) Vancouver, British Columbia / TheNewswire / November 9, 2017. Candente...
About this update from Xali Gold Corp.
[{"type":"text","content":"Sun River Gold Commits to Financing the Re-Processing of the Historic Tailings at El Oro(via TheNewswire)\n\n \nVancouver, British Columbia / TheNewswire / November 9, 2017. Candente Gold Corp. (TSXV:CDG) (\"Candente Gold\" and/or the \"Company\") is pleased to announce that it has entered into a binding letter agreement with Sun River Gold Corp. (\"Sun River\" or \"SRG\"), a private Nevada corporation, to grant Sun River the right and option to further test and, if proven economic, develop and operate the Company's tailings project in El Oro Mexico (the \"Tailings Project\"), through Candente Gold?s Mexican subsidiary, CCM EL Oro Jales, S.A. de C.V. (\"CCM El Oro Jales\"), according to the agreement CCM EL Oro Jales executed with the Municipality of El Oro, subject to receipt of regulatory approval. \n\n \n \nIn order to exercise the option, Sun River shall make staged payments, over 28 months, totalling US$500,000 commencing upon signing of the letter agreement (US$170,000 being committed), bring the mine tailings properties into commercial production within 36 months of the effective date of the option agreement, and grant to the Company a 5% of net profits (\"NPI\") Life of Mine royalty (the \"Candente Royalty\") on production from the properties. Upon making the totality of the staged payments and if commercial production has been achieved, Sun River will indirectly acquire a 100% interest in CCM El Oro Jales. \n\n \n \nSun River will also be responsible for the obligation to pay an additional 8% NPI to the Municipality of El Oro (the \"El Oro Royalty\"). Candente Gold (through its Mexican subsidiary CCM El Oro Jales) has the right to recover all available gold and silver from the Mexico mines tailings deposit and pay to the Municipality of El Oro an 8% Nets Profits Interest royalty, after retaining the first US$1.5M from the El Oro Royalty (see News Release No. 063 dated September 14, 2017). Sun River must direct the first US$1.5M from the El Oro Royalty to the Company. Therefore, upon commercial production, the Company will start receiving a 5% NPI royalty and the first US$1,500,000 of the El Oro Royalty.\n\n \n \nIf at the end of the option period, commercial production in the tailings retreatment operation has not been achieved, the parties will engage a mediator to confirm that SRG has in fact made its best efforts to ...