Mar 18 2014
Solvista Gold Corporation ("Solvista" or the "Company") is pleased to announce that it has entered into a definitive option agreement (the "Option Agreement") with IAMGOLD Corporation ("IAMGOLD"), which replaces the letter agreement entered into between the parties (the "Letter Agreement") as previously announced on December 18, 2013. The Company previously provided an update on the status of the Letter Agreement in a press release dated January 24, 2014.
"We are pleased to have reached definitive terms governing our relationship with IAMGOLD, and are excited to work with them as they continue advancing the Project," stated Miller O'Prey, President and CEO of Solvista.
Under the terms of the Option Agreement, which are substantially similar to those in the Letter Agreement, IAMGOLD has agreed to complete a minimum of US$2,500,000 in exploration expenditures and 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 (including the US$2,500,000 firm commitment described above) 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 would enter into a joint venture to hold and advance the Project.
The key terms of the Option Agreement were approved by a majority of Solvista's shareholders, with holders of approximately 60% of Solvista's issued and outstanding common shares providing their approval in the form of written consents.
Updated Technical Report
The TSX Venture Exchange (the "TSX-V") required that the Company prepare and file an updated technical report in respect of the Project (the "Technical Report") in connection with the entering into of the Option Agreement.
The Technical Report, entitled "Technical Report on the Caramanta Project, Department of Antioquia, Republic of Colombia" and with an effective date of February 28, 2014, was authored by Miller O'Prey, President and CEO of the Company and a 'qualified person' for purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). Mr. O'Prey is not 'independent' of the Company based on NI 43-101 but holds no personal interest in the Project.
A copy of the Technical Report, which was prepared in compliance with NI 43-101, is available under the Company's SEDAR profile at www.sedar.com.
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.
Source: http://www.solvistagold.com/