Golden Predator Sells Tonkin Springs Royalty for $5.85 MM
VANCOUVER, July 21, 2011 /PRNewswire/ -- Golden Predator Corp. (TSX:GPD) (the 'Company') is pleased to announce that it has agreed to sell its interest in the Tonkin Springs Project to US Gold Corporation (TSX: UXG) for CAD $5,850,000. Prior to this sale, the Company had leased the interest to US Gold in exchange for a 5% gross smelter returns royalty with annual advance minimum royalty payments, recoverable from production. The Company retains a 1.4% net smelter returns royalty on all production from the claims sold in excess of the previously reported resources (see US Gold news release dated May 20th, 2008). Royalty credits from previously paid advance minimum royalty payments in excess of USD $4,500,000, which would have been deducted from any future payments under the 5% gross smelter returns royalty, have been extinguished.
'Realizing a significant gain from the disposition of Tonkin Springs, a non-core asset in our Royalty Portfolio, underlines its substantial and tangible value,' said William M. Sheriff, Chairman & CEO. 'We continue to project that the gross smelter and net smelter royalty payments on the principle assets in the Royalty Portfolio will finance a sizeable portion of our ongoing exploration expenses. We are confident that with this model, we are offering significant value to our shareholders.'
Royalty Portfolio The Company's Royalty Portfolio is the foundation of its business plan to generate internal revenue to support ongoing exploration and development work, diminishing the need to dilute existing shareholders with ongoing financings. Highlights of the Royalty Portfolio include:
- 4.0% GSR on the 286 claims in the
-- Barrick Gold Corp. Bald Mountain Mine Plan of
Operations
- 1.0% in-kind GSR on the 7,700 ha
section of the Alligator-Bald
Regional Area that is currently
production (as of Q2 2009)
-- Midway Gold Corp. - 4.0% GSR on the Pan Deposit
- 2.0% NSR on the Taylor Silver
-- Silver Predator Corp. Mine
- 0.5% NSR on the Rattlesnake
-- Evolving Gold Corp. Deposit
-- significant pre-production
revenue
-- property interests covering
over 28,000 ha, primarily
in Nevada
The Tonkin Springs claims have been held in the Company's Royalty Portfolio since it was acquired in March 2008 from the Lyle Campbell Trust. However, the Company did not consider Tonkin Springs a core asset of the Royalty Portfolio and has not included the property in internal calculations of future revenue potential from the Royalty Portfolio. Closing of the transaction is scheduled to occur on or before July 31, 2011.
About Golden Predator Corp. Golden Predator Corp., a well-funded exploration and development company, has a mandate to be the leading gold property explorer and developer in Yukon, Canada. Golden Predator has a vast Yukon property position with three advanced gold projects, six pipeline prospects as well as exploration landholdings, all totalling over 2300 km2. The 2011 winter drilling program has been completed at the Brewery Creek project and continues at the Grew Creek project. In 2011 Golden Predator will continue aggressive drill programs and work towards completing initial resource estimates for Grew Creek and Clear Creek and updating the existing resource estimate for Brewery Creek, in addition to conducting initial drilling at the recently acquired Harlan project.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. There are numerous risks and uncertainties that could cause actual results and Golden Predator's plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, Golden Predator assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.
Golden Predator Corp.
CONTACT:
Golden Predator Corp.
Investor Relations
(604) 648-GOLD (4653)
info@goldenpredator.com
http://www.goldenpredator.com/