Gold Forward Sale — Update
July 15th, 2020 — Vancouver, Canada — Canamex Gold Corp. (the “Company” or “Canamex”) (CSE: CSQ) provides an update regarding the status of its Gold Forward Sale Agreement (the “Agreement”) with MetalStream Ltd (“MetalStream”), originally annouced January 27, 2020 and an extension announced April 23, 2020.
The initial first tranche payment of US$5,000,000 has been increased to US$5,500,000; and will now be completed after July 14th, 2020 due to unforeseen banking delays, experienced by Metalstream. Despite these banking delays, the parties remain fully committed to the Agreement; and the first tranche payment is expected to be completed shortly.
The subsequent second and third tranches payable under the Agreement have also been amended as follows:
a) Second tranche payment of US$5,000,000 has been increased to US$5,500,000.
b) Third tranche payment of US$25,000,000 has been reduced to US$24,000,000.
The second and third tranches will be paid in accordance with the terms of the Agreement.
Rohan Cavaliero, Managing Director of Metalstream stated “Our private placement is progressing very well, and with these banking delays now behind us, we remain extremely confident of full subscriptions by the close of the offering at the end of July, 2020. On that basis, we fully expect to make the initial first tranche payment to Canamex shortly thereafter. “
Canamex is a public listed company registered in British Columbia, Canada, trading on the Canadian Securities Exchange (CSE: CSQ), and is engaged in pre-development of the Bruner gold and silver project in the prolific gold jurisdiction of Nye County, Nevada. The region is home to several producing and past-producing mines along the Walker Lane Trend. Canamex completed a positive Preliminary Economic Assessment (PEA) on the Bruner project in 2016. Based on additional drilling conducted on the property, the company completed an updated PEA in 2018, which increased the resources and improved the economics of the project.
The PEA is based primarily on indicated resources, but also included about 10% inferred resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized.
Canamex is now moving the Bruner project forward into permitting and development on the strength of this positive updated PEA. Further information is available at https://www.canamexgold.com/
Projects that proceed to construction based solely upon a PEA have a higher degree of risk associated with them than projects that have gone through a feasibility study of mineral reserves. Canamex is not basing its decision to proceed to permitting and construction on a feasibility study. Feasibility level engineering will proceed in parallel with project permitting such that both should be completed simultaneously to allow project construction to commence after feasibility level engineering has been completed.
Greg Hahn, Vice President, and a Certified Professional Geologist (#7122) is the Qualified Person under NI43–101 responsible for preparing and reviewing the data contained in this press release.
On Behalf of the Board
President and CEO
The Canadian Securities Exchange accepts no responsibility for the adequacy or accuracy of this release.
FORWARD LOOKING INFORMATION
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release are forward-looking statements that involve various risks and uncertainties. Forward-looking statements in this release include statements with respect to future services to be provided to the Company, and other future plans, objectives or expectations of the Company. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s plans or expectations include the availability of capital and financing required to continue the Company’s operations; uncertainty regarding the performance by other entities of contractual obligations; general economic, market or business conditions; competition and loss of key employees; regulatory changes and restrictions; timeliness of government or regulatory approvals; and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. In connection with the forward-looking information contained in this release, the Company has made numerous assumptions. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as otherwise required by applicable securities legislation.