GoGold Eliminates 12% Net Profit Royalty with Municipality of Parral

http://www.juniorminingnetwork.com/junior-miner-news/press-releases/644-tsx/ggd/15787-gogold-eliminates-12-net-profit-royalty-with-municipality-of-parral.html#.VqEroeTrvIU

HALIFAX, Jan. 21, 2016 /CNW/ – GoGold Resources Inc. (TSX: GGD) (“GoGold”, “the Company”) reports that the royalty agreement (the “Agreement”) with the Municipality of Parral (“the Municipality”) has been amended to replace the current 12% net profit royalty (“NPR”) and $30,000 monthly payment with a monthly payment of $47,500 and no NPR. The monthly payment of $47,500 increases on a sliding scale based on an increase in the monthly average market price of silver (“Silver Price”).  The monthly payment will increase to $55,000 per month if the Silver Price exceeds $18 per ounce, $70,000 per month if the Silver Price exceeds $24 per ounce, and $87,500 if the Silver Price exceeds $28 per ounce.  Upon entering into the initial Agreement the Company had provided the Municipality with a prepayment of $1,000,000 to be credited against future NPR payments.  This prepayment has been forgiven by the Company in exchange for eliminating the NPR.

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