HALIFAX, NOVA SCOTIA – (November 2, 2017) – GoGold Resources Inc. (“GoGold” or the “Company”) (TSX:GGD) announces that it has completed its previously announced sale to Agnico Eagle Mines Limited (“Agnico”) of the Santa Gertrudis gold project (the “Project”), located in Sonora, Mexico (the “Transaction”).
Pursuant to the Transaction the Company received total cash consideration of US$80 million (less a working capital adjustment of US$379,978) and was granted a 2% NSR on the Project, 50% of which may be repurchased at any time for US$7.5 million. The Company has applied the net proceeds of the Transaction to repay in full the US$46.5 million outstanding under its existing senior revolving credit facility with the Bank of Montreal (the “Facility”), to repay the principal and interest on the US$7.5 million subordinated secured term loan advanced by Agnico to the Company and for general working capital purposes. Following the completion of the Transaction the Facility was terminated.
Brad Langille, President and CEO of GoGold stated, “We are very pleased to complete this Transaction with Agnico. We believe GoGold shareholders are well positioned to benefit from the future potential of Santa Gertrudis through our retained royalty. After this Transaction GoGold will be debt free with a strong cash balance which positions the Company well as the Parral Tailings project ramps up to its full production potential, while also allowing us to continue to pursue further opportunities.”