Renaissance Gold Signs Letter of Intent to Sell AuEx Argentina to Atala Resources for Cash, Stock and Royalties
Renaissance Gold Inc. (TSX:REN) (“RenGold”) is pleased to announce that Atala Resources Corporation, a Canadian private company ("Atala"), has signed a letter of intent (the “LOI”) to purchase AuEx Argentina S.A. (“AuEx”), a wholly owned subsidiary of RenGold in exchange for cash, stock and a net smelter royalty (“NSR”). On signing the definitive agreement Atala will issue RenGold 500,000 common shares and will pay C$20,000 cash. On completion of Atala raising C$1 million, RenGold will receive an additional C$30,000. With raising another C$1 million RenGold will receive another C$50,000. RenGold will retain a NSR on all properties of 4% minus any underlying NSR (including governmental and underlying ownerships) not to be less than 1% nor greater than 3%. The purchase of AuEx will include the Covadonga and El Meridiano properties currently subject to an earn-in agreement between Atala and RenGold.
Richard Bedell, President and CEO, comments: "Atala is a focused and savvy group whose management helped to lead the success in Argentina of Minera Andes Inc. (subsequently merged into McEwan Mining Inc). They clearly understand the endowment and potential of Santa Cruz Province. This agreement allows Atala to grow these projects and for RenGold to retain an interest in this Province and focus more of its energy in Nevada."
Renaissance Gold Inc.
Renaissance Gold Inc. is a gold/silver exploration company that has a large portfolio of exploration projects in Nevada, Utah, Argentina and Spain. Many of the projects are in exploration earn-in agreements with industry partners who provide exploration funding. RenGold applies the extensive exploration experience and high-end technical skills of its founders and team members to search for and acquire new precious metal exploration projects that are then offered for joint venture.
Renaissance Gold Inc.
By: Richard L. Bedell, President and CEO
For further information, contact:
Richard L. Bedell, 775-337-1545 or rbedell@rengold.com
Eric Struhsacker, 775-337-1545 or estruhsacker@rengold.com
This news release contains certain statements that may be deemed “forward-looking” statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although Renaissance Gold Inc. believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of Renaissance Gold Inc.’s management on the date the statements are made. Except as required by law, Renaissance Gold Inc. undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.
Contact
Renaissance Gold Inc.
Richard L. Bedell, 775-337-1545
rbedell@rengold.com
or
Eric Struhsacker, 775-337-1545
estruhsacker@rengold.com