VANCOUVER, BC / ACCESSWIRE / January 28, 2020 / Guyana Goldstrike Inc. (the "Company" or "Guyana Goldstrike") (TSXV:GYA, OTC PINK:GYNAF, FSE:1ZT) is pleased to announce the Company has signed a definitive gold forward purchase agreement (the "Agreement"), dated January 24, 2020, with an arms-length investor (the "Investor") for proceeds of up to US$9,000,000, for the Marudi Gold Project ("Marudi" or the "Property", or the "Project") located in Guyana, South America.
Under the terms of the Agreement, the Investor will make an initial payment of US$2,000,000 on or before April 14, 2020. Thereafter, a second payment of US$7,000,000 will be advanced within thirty days of a royalty interest in the Project in favour of the Investor having been registered.
The Agreement is non-dilutive to the Company's current share structure as no shares or warrants will be issued to the Investor. The proceeds will enable the Company to finalize its purchase of the Project and further explore and develop the resource potential of the Property.
In consideration for providing funding, the Company has agreed to deliver 30,000 ounces of gold, representing approximately 10% of the Project's current mineral resource estimate (please see "Mineral Resource Estimates" below). Deliveries will commence within 120 days of a declaration of commercial production from the Project, or within 36 months of the initial funding under the Agreement, whichever the earlier, with an annual delivery schedule of 3,000 ounces. The Company has also agreed to grant the Investor a right of first refusal to acquire a further 30,000 ounces of gold, on terms to be negotiated between the parties.
The delivery obligation of the Company will be secured by a 12.5% net smelter returns royalty in favour of the Investor, to be registered against the Project. The royalty will not be payable while the Company meets the deliver schedule and will expire once all delivery obligations under the Agreement have been satisfied.
Mineral Resource Estimates
The Mazoa Hill Zone contains the Company's current mineral resource estimate. Data analyzed suggests that the mineralized zone is open in several directions including at depth.
- 243,300 indicated gold ounces within 3,637,000 tonnes grading 2.1 g/t;
- 78,800 inferred gold ounces within 1,278,000 tonnes grading 1.9 g/t
For further information concerning the Mazoa Hill Zone Resource Estimate, readers are encouraged to review "Technical Report: Marudi Property Mazoa Hill Mineral Resource Estimate", a technical report prepared for the Company by Global Mineral Resource Services and is available at: GYA Mazoa Hill Zone 43-101, at the Company's website www.guyanagoldstrike.com and under the Company's profile on www.sedar.com.
Readers are cautioned that although the Project has a mineral resource estimate and a mining license a production decision has not been reached by the Company in respect of the Project, nor has a feasibility study been completed to assess the economic viability of commercial production at the Project. Also note, mineral resources that are not mineral reserves do not have demonstrated economic viability.
About Guyana Goldstrike Inc.
The Company is developing the Marudi Gold Project, which has a 17-year mining license and is located in Guyana, South America. Historic diamond drilling completed on the Project by prior operators have delineated two zones of gold mineralization: Mazoa Hill and Marudi North zones. A mineral resource estimate has been completed on the Mazoa Hill Zone. Data analyzed suggests the zone is open to mineralization in multiple directions and at depth.
Through the recent exploration program, the Company has discovered a third mineralized zone, called Toucan Ridge, which is situated approximately 1000 metres to the northeast of the Mazoa Hill Zone. In addition to the known gold zones and the new Toucan Ridge zone, the Company has over 45 sq. kms of underexplored land and believes the greater land position has excellent upside potential for the discovery of new mineralized zones through the development of previously and newly identified mineralized bedrock targets on the Project.
The Republic of Guyana is located in South America adjacent to Suriname. The country is English speaking and its legal system is based on British common law with a democratically elected government. It has an established mining act and a rich history of gold production. The Fraser Institute's 2016 Annual Survey of Mining listed Guyana as the third best mining jurisdiction with regards to investment attractiveness in the Latin America and Caribbean Basin sub-group. The Guiana Shield is the geographic gold-hosting region and is world-recognized as a premier gold region that is highly prospective, under-explored and has geological continuity with West Africa. Barrick has recently announced that the Giuana Shield will be their priority region for discovery opportunities and early stage exploration.* Exxon Recently announced the discovery of 6 billion barrels of offshore oil with production scheduled for first quarter of 2020. This discovery will designate Guyana as having the fastest growing GPD in 2020, estimated to be 86%.**
Locke Goldsmith, M.Sc., P. Eng, P. Geo, Chief Geologist and Exploration Manager for the Company, is a Qualified Person in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Mr. Goldsmith has reviewed and approved the scientific and technical content of this news release.
On behalf of the Board of Directors of
GUYANA GOLDSTRIKE INC.
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain certain "Forward-Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target, "plan", "forecast", "may", "schedule" and other similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to future prices of commodities, accuracy of mineral or resource exploration activity, reserves or resources, regulatory or government requirements or approvals, the reliability of third party information, continued access to mineral properties or infrastructure, fluctuations in the market for gold, changes in exploration costs and government regulation in Guyana, status of artisanal mining activities and associated rights, and other factors or information. Such statements represent the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affections such statements and information other than as required by applicable laws, rules and regulations.
SOURCE: Guyana Goldstrike Inc.