Jan 25 2014
Solvista Gold Corporation ("Solvista" or the "Company") wishes to provide an update on the status of its Letter Agreement (the "Agreement") with IAMGOLD Corporation ("IAMGOLD"), which Agreement sets out the major terms of a 70% earn-in option agreement, as was previously announced on December 18, 2013.
Under the terms of the Agreement, IAMGOLD will have the right to earn up to a 70% interest in the Company's Caramanta Project (the "Project"), located in Colombia's Mid-Cauca Belt, by completing the following steps:
- IAMGOLD can earn an initial 51% interest in the Project by investing a total of US$18,000,000 (of which US$2,500,000 is a firm commitment) in qualifying expenditures, which may include US$900,000 of cash payments to Solvista, over a maximum five-year period commencing on December 16, 2013; and
- IAMGOLD can earn an additional 19% interest in the Project, for a total 70% interest, by investing a further US$18,000,000 in qualifying expenditures over a maximum three-year period following the completion of the initial 51% earn-in.
Subject to the satisfaction of the aforementioned conditions, and upon completion of IAMGOLD's 51% or 70% earn-in, as IAMGOLD may elect, Solvista and IAMGOLD will enter into a joint venture to hold and advance the Project.
Further details regarding the Agreement are available in the Company's press release dated December 18, 2013.
The Agreement, which is to be replaced by a definitive option agreement in the future, contemplates a "Reviewable Disposition" (as defined in the policies of the TSX Venture Exchange (the "TSX-V")) of more than 50% of Solvista's assets, business or undertaking. As such, the Agreement remains subject to (i) shareholder approval, which the Company proposes to obtain by way of written consents from holders of a majority of its shares, and (ii) regulatory approval by the TSX-V. Further updates will be announced on the status of the Agreement as appropriate.
About the Caramanta Project
The Caramanta Project is located at the centre of the Middle Cauca Belt, one of the most prolific gold districts in Colombia, with production dating back to pre-colonial times. It has also been the focus of intense exploration over the past five years with a number of new discoveries including La Colosa (Anglogold Ashanti), a porphyry-gold deposit with a JORC-compliant Inferred Resource of 24.15 Moz Au at 0.94 g/t Au. Directly south of the Project is Gran Colombia Gold's Marmato Project with NI 43-101-compliant Measured and Indicated Resources of 11.8 Moz Au at 0.9 g/t Au and 80 Moz Ag at 6.1 g/t Ag and Inferred Resources of 2.6 Moz Au at 1.02 g/t Au and 9 Moz Ag at 3.7 g/t Ag. To the north is Sunward Resources' Titiribí deposit where a NI 43-101-compliant Measured and Indicated Resource of 6.2 Moz AuEq at 0.50 g/t and Inferred Resource of 6.5 Moz AuEq at 0.53 g/t have been announced.
About Solvista
Solvista is a gold exploration company with two projects, Caramanta and Guadalupe. These projects cover approximately 45,000 hectares in the Antioquia province of Colombia, a region rich in historic gold mining tradition and where several new gold discoveries have recently been made. Solvista is well funded and has completed initial drill programs at both its projects, with the discovery of significant mineralization at both. Solvista's head office is located in Toronto, Canada with its Colombian headquarters located in Medellín. For further details on Solvista, its management team and its projects, please refer to Solvista's website (www.solvistagold.com).
Source: http://www.solvistagold.com/