LEAGOLD COMPLETES THE ACQUISITION OF THE LOS FILOS GOLD MINE

http://www.leagold.com/news/2017/leagold-completes-the-acquisition-of-the-los-filos-gold-mine

  • Leagold has acquired the Los Filos Gold Mine in Mexico for US$350 million from Goldcorp Inc. (“Goldcorp”).
  • The Los Filos operations consists of two open-pit mines, Los Filos and Bermejal, an underground mine at Los Filos and the opportunity to develop a new underground mine at Bermejal as an expansion project. During 2016, Los Filos produced 231koz of gold at an AISC/oz of $878[1].
  • Leagold has completed a C$179 million equity financing (US$133 million), US$50 million equity private placement, and US$150 million senior secured term loan.
  • Post closing, Leagold estimates its cash balance to be approximately US$76 million.
  • Russell Ball, Goldcorp’s EVP Corporate Development and CFO, has joined Leagold’s Board of Directors.
  • Leagold aims to build a new mid-tier gold producer with a focus on opportunities in Latin America; Los Filos is the first acquisition.

Vancouver, April 7, 2017 – Leagold Mining Corporation (TSX-V: LMC) (“Leagold” or the “Company”) is pleased to announce that it has completed the acquisition of the Los Filos Gold Mine in Guerrero State, Mexico for US$350 million (the “Acquisition”) from Goldcorp. The purchase price consists of US$279 million in cash and US$71 million in common shares of Leagold. See Table 1 for details on Leagold’s current capital structure and ownership. Russell Ball, Goldcorp’s EVP Corporate Development and CFO, has joined Leagold’s Board of Directors as Goldcorp’s nominee. Concurrent with this appointment, Jay Sujir has resigned from the Board. Leagold advises that its common shares will resume trading on the TSX-Venture Exchange at market open on April 10, 2017 under the symbol LMC, and that its Subscription Receipts (symbol LMC.R) have been converted into common shares and have been de-listed effective April 7, 2017.

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