All dollar figures are in Canadian
dollars
VANCOUVER, May 22, 2019 /CNW/ - Equinox Gold
Corp. (TSX-V: EQX, OTC: EQXFF) ("Equinox Gold" or the
"Company") is pleased to announce that the Company has sold its Elk
Gold Property in British Columbia,
Canada to Bayshore Minerals Incorporated ("Bayshore") for
total consideration of $10 million
paid as follows:
- $1 million in cash which was
received by Equinox Gold on closing of the sale; and
- $9 million in a first ranking
secured promissory note (the "Promissory Note") payable in annual
installments of $3 million commencing
two years from closing.
The total amount due under the Promissory Note may be adjusted
such that if Bayshore pays a total of $8 million within two years from closing,
that will represent full and final payment; or if Bayshore pays a
total of $9.5 million within
three years from closing, that will represent full and final
payment.
Sale of the Elk Gold Property was completed by way of a purchase
by Bayshore of the shares of Equinox Gold's wholly-owned
subsidiary, Gold Mountain Mining Corporation.
Bayshore is a private, British
Columbia based mineral exploration company focused on the
exploration and development of the Elk Gold Property. Bayshore
plans to continue to grow its portfolio of gold properties as
opportunities arise.
On Behalf of the Board of Equinox Gold Corp.
"Christian Milau"
CEO & Director
Cautionary Notes
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as such term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Forward-looking Statements
This news release contains certain forward-looking
information and forward-looking statements within the meaning of
applicable securities legislation and may include future-oriented
financial information. All statements, other than statements of
historical fact, are forward-looking statements.
Forward-looking statements or information in this news release
relate to, among other things: the ability of the Company to
successfully complete the sale of the Elk Gold Property and collect
future payments related to the sale. Although the Company believes
that the expectations reflected in such forward-looking statements
and information are reasonable, undue reliance should not be placed
on forward-looking statements since the Company can give no
assurance that such expectations will prove to be correct.
The Company has based these forward-looking statements and
information on the Company's current expectations and projections
about future events and these assumptions. While the Company
considers these assumptions to be reasonable based on information
currently available, they may prove to be incorrect. Readers are
cautioned not to put undue reliance on the forward-looking
statements or information contained in this news release.
The Company cautions that forward-looking statements and
information involve known and unknown risks, uncertainties and
other factors that may cause actual results and developments to
differ materially from those expressed or implied by such
forward-looking statements or information contained in this news
release and the Company has made assumptions and estimates based on
or related to many of these factors. Such factors include
those identified in the Company's Management's Discussion and
Analysis for the year ended December 31,
2018 and in the Company's Management Information Circular
dated March 18, 2019, both of which
are available for download on SEDAR at www.sedar.com.
Forward-looking statements and information are designed to help
readers understand management's views as of that time with respect
to future events and speak only as of the date they are made.
Except as required by applicable law, the Company assumes no
obligation and does not intend to update or to publicly announce
the results of any change to any forward-looking statement or
information contained or incorporated by reference to reflect
actual results, future events or developments, changes in
assumptions or changes in other factors affecting the
forward-looking statements and information.
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content:http://www.prnewswire.com/news-releases/equinox-gold-sells-elk-gold-property-for-10-million-300854665.html
SOURCE Equinox Gold Corp.
