Endomines AB announced that further to the letter of intent announced on January 28 the following transaction terms now agreed with Transatlantic Mining to acquire the US Grant gold mine and mill in conjunction with the Lease Assignment of the Kearsarge Gold Project. Target is to close the transaction by May 31, 2020.
Summary details of the transaction:
- Acquisition of US Grant gold mine and mill, and takeover of the lease agreement covering the Kearsage gold mine, located nearby the US Grant mill
- Payment of USD 550,000 (paid January 8, 2020)
- Payment of USD 2.0 million (at closing)
- Payment of approx. USD 7.4 million in Endomines shares based on a 10-day VWAP from closing date of the transaction
- Payment of USD 2.0 on first gold production on the acquired assets or 2 years, whichever is earlier
Both parties have signed the Sale and Purchase Agreement with the closing to be completed by May 31, 2020, unless mutually agreed by parties to extend beyond this date. The closing is subject to final acceptance for filing by the TSX Venture Exchange and shareholder approvals Transatlantic Mining for the disposition as required for the closing.
Greg Smith, CEO of Endomines, comments: “This is an excellent addition to our existing project portfolio of high-grade US based gold assets. By acquiring these assets from Transatlantic, we will accelerate our growth and provide Endomines with an excellent avenue to become a 100,000-ounce gold per year producing company. Based on the permitting schedule we anticipate being able to start production within 12 months.”
Further announcements will be made regarding the progress of the transaction on or before the closing date.
Endomines is a mining and exploration company with its primary focus on gold. The Company explores for gold along the Karelian Gold Line in Eastern Finland and develops mining operations in Idaho, USA. Endomines aims to improve its long-term growth prospects by increasing its exploration activities and through acquisitions. Endomines aims to acquire deposits that are situated in stable jurisdictions and can be brought to production rapidly with limited investments.
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