Vancouver, BC / ACCESSWIRE / July 23, 2014 / Golden Arrow Resources Corporation (TSX-V: GRG, FRA: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company") is pleased to announce that in connection with the Company's sale of its 1% NSR on Yamana Gold Inc.'s Gualcamayo Gold mine to Premier Royalty Inc. ("Premier") (see news release dated November 12, 2012), it has exercised its put right ("Put Right") to acquire all warrants outstanding for cancellation for a total of $1,250,000.
As part of the royalty sale, Golden Arrow received 1,000,000 warrants to purchase an aggregate of up to 1 million common shares of Premier at an exercise price per share equal to $2.52 per common share of Premier for a period of two years from issuance. The Company had the Put Right on 30 days' notice to require Premier to acquire all warrants outstanding at the time for cancellation for a purchase price of $1.25 per warrant at any time prior to the expiry date for a total of $1,250,000 if all warrants are put to Premier.
"As the expiration date of these warrants approached, management exercised the Put Right option to receive $1,250,000. This represents additional value to Golden Arrow shareholders, as the Company tops up its treasury and avoids dilution to shareholders," stated Joseph Grosso, President & CEO.
During 2013, all the issued and outstanding common shares of Premier were acquired by Sandstorm Gold Ltd. ("Sandstorm") and as a result of the acquisition, the Company was entitled to exercise its warrants of Premier to purchase common shares of Sandstorm. Sandstorm also acquired the Put Right obligation in favour of the Company as a result of its acquisition of Premier.
About Golden Arrow:
Golden Arrow is a Vancouver-based explorer focused on identifying, acquiring and advancing precious and base metal projects in Argentina with the goal of achieving a world class discovery. The main focus is on advancing the flagship Chinchillas Silver Project located in Jujuy, Argentina. Golden Arrow has a strong treasury which will allow the company to advance its Chinchillas Silver Project. Golden Arrow will continue to execute its strategy to leverage the Company's exploration exposure by attracting partners to fund work on its other high quality mineral projects. Golden Arrow is a member of Grosso Group, a management company specialized in resource exploration, and working in Argentina where it is highly regarded and trusted since 1993.
ON BEHALF OF THE BOARD
Mr. Joseph Grosso
Executive Chairman, President, CEO and Director
For further information please contact: Corporate Communications
Tel: 1-604-687-1828 / Toll-Free: 1-800-901-0058 / Email: [email protected]
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Golden Arrow Resources Corporation