Adyton and East Vision International Holdings Execute US$9.5M Investment and Development Agreement for the Fergusson Island Gold Project
TSX Venture Exchange: ADY
OTC: ADYRF
FSE: 701GR
Managing Director
EVIH Chairman Mr. Lou said, "We are greatly looking forward to working with Adyton on the
The Project comprises the Wapolu and Gameta advanced Exploration Licenses on Fergusson Island in
Project |
Indicated |
Inferred |
||||
Au |
Tonnes |
Au |
Au |
Tonnes |
Au |
|
Fergusson Island - |
1.33 |
4.0 |
173 |
1.01 |
10.5 |
340 |
Fergusson Island – |
- |
- |
- |
1.06 |
5.8 |
200 |
Fergusson Island total |
1.33 |
4.0 |
173 |
1.02 |
16.3 |
540 |
|
Gameta and Wapolu resources at 0.5g/t gold cut-off 1 |
Under the terms of the IDA, EVIH has the right to acquire up to a 50% ownership interest in the Project through a total investment of up to
Should the Initial Investment Amount of
EVIH will earn its 50% interest in the Project by acquiring an ownership interest in the Company's subsidiary
i. |
MRE will issue 103,365,385 Class |
|
|
ii. |
The Class |
|
|
(a) |
20% of the Class |
|
|
(b) |
30% of the Class |
|
|
(c) |
50% of the Class |
Should each of the Initial Investment Milestones be satisfied, all of the Class
|
_________________________ |
|
1
See the technical report entitled "NI 43-101 Technical Report on the Fergusson Gold Property, |
On the satisfaction of all of the Initial Investment Milestones and MRE determining to proceed with the development of the Project, EVIH and the Company have agreed to use reasonable endeavours to negotiate and enter into a project funding and development agreement reflecting the following terms:
i. |
EVIH will finance the development of the Project through a loan provided by EVIH to MRE, at an interest rate of 8% per annum ("EVIH PFA Loan"). The required funding amount will be determined by the project feasibility study. |
|
|
ii. |
EVIH will be reimbursed for the EVIH PFA Loan amount and accrued interest thereon through a preferential cash sweep of 90% of the free cash flow from the Project until the EVIH PFA Loan amount and accrued interest thereon have been repaid. |
If EVIH does not provide the required project funding for the development of the Project, its ownership interest in MRE will be reduced to 10% through the issue of additional Class A Shares to the Company.
In addition to the Initial Investment Amount and the EVIH PFA Loan amount referred to above, EVIH is required to pay the Company an additional amount of
The transaction is an arm's length transaction and qualifies as an Exempt Transaction under the policies of the
ON BEHALF OF THE BOARD OF ADYTON RESOURCES CORPORATION
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Adyton has a total declared Resource inventory (disclosed in accordance with NI 43-101) within its PNG portfolio of projects of 2,175,000 ounces gold.
Adyton is also quoted on the OTC under the code ADYRF and on the Frankfurt Stock Exchange under the code 701:GR.
For more information about Adyton and its projects, visit www.adytonresources.com
The scientific and technical information contained in this press release has been prepared, reviewed, and approved by Rod Watt, BSc Hons (Geo), FAusIMM, Chief Geologist of Adyton, who is a "Qualified Person" as defined by National Instrument 43‐ 101 ‐ Standards of Disclosure for Mineral Projects.
This press release includes "forward‐looking statements", including forecasts, estimates, expectations, and objectives for future operations that are subject to several assumptions, risks, and uncertainties, many of which are beyond the control of Adyton. Forward‐ looking statements and information can generally be identified by the use of forward‐looking terminology such as "may", "will", "should", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology. Forward looking statements in this news release include all statements with respect to the funding of the Initial Investment Amount, the completion of the Initial Investment Milestones and the funding and development of the Project. The forward‐looking information contained herein is provided for the purpose of assisting readers in understanding management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Forward‐looking information are based on management of the parties' reasonable assumptions, estimates, expectations, analyses and opinions, which are based on such management's experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect. Such factors, among other things, include: impacts arising from the global disruption caused by the Covid‐19 coronavirus outbreak, changes in general macroeconomic conditions; changes in securities markets; changes in the price of gold or certain other commodities; change in national and local government, legislation, taxation, controls, regulations and political or economic developments; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formations pressures, cave‐ins and flooding); discrepancies between actual and estimated metallurgical recoveries; inability to obtain adequate insurance to cover risks and hazards; the presence of laws and regulations that may impose restrictions on mining; employee relations; relationships with and claims by local communities and indigenous populations; availability of and changes in the costs associated with mining inputs and labour; the speculative nature of mineral exploration and development (including the risks of obtaining necessary licenses, permits and approvals from government authorities); and title to properties. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward‐looking statements. Such forward‐looking information represents management's best judgment based on information currently available. No forward‐looking statement can be guaranteed, and actual future results may vary materially. Readers are cautioned not to place undue reliance on forward looking statements or information. Adyton Resources Corporation undertakes no obligation to update forward‐looking information except as required by applicable law.
SOURCE