Announcing Nueva Granada Gold Corp: A New Cash-flowing Precious Metal Physical Offtake Company
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TORONTO, June 06, 2018 (GLOBE NEWSWIRE) — Nueva Granada Gold Corp. (“the Company” or “NG Gold”) is pleased to announce that it has concluded a merger transaction involving Lemuria Royalties Corp and certain assets of the refining division of Sun Valley Investments of Houston, Texas (“Sun Valley”; www.sunvalleyinv.com), to form a new precious metal physical offtake company to be called Nueva Granada Gold Corp (or “NG Gold”; www.ng.gold). The exchange of Lemuria shares for shares of Nueva Granada Gold Corp has been unanimously approved by Lemuria shareholders.
NG Gold assets will include 100% of the precious metal offtake from the Segovia and Marmato operations of Gran Colombia Gold in Antioquia, Colombia, which it will process and resell through Sun Valley’s proprietary refining, marketing, trading and hedging platform. NG Gold will also hold a 2% NSR on the Caylloma lead-zinc-silver mine operated by Fortuna Silver Inc.
Lemuria, now a wholly owned subsidiary of NG Gold, also contributes a total of approximately US$6.0 million to the general operating working capital of NG Gold at closing. Initial annualized net revenues for 2018 are estimated at approximately US$5 million. NG Gold is focused on evaluating new accretive investment opportunities in the precious metal financing/refining offtake space with mining companies in the Americas and Australia.
Abraham Drost, CEO of Lemuria and Director of NG Gold commented, “NG Gold’s refining contract product combines traditional refining capacity with upfront capital on attractive terms. It has intriguing tax and balance sheet advantages which are well regarded by precious metal producers. NG Gold will remain focused on selective and accretive investments and we look forward to growing our business in conjunction with our new partners at Sun Valley to the benefit of all our shareholders and stakeholders.”
David Morgan, former CEO of Lemuria will also continue as a Board member of NG Gold. CIBC World Markets Inc. acted as exclusive financial advisor to Lemuria in connection with this transaction.
This news release contains forward-looking statements within the meaning of securities legislation in Canada and which are based on the expectations, estimates and projections of management of the parties as of the date of this news release unless otherwise stated. Forward-looking statements are generally identifiable by use of the words “expect”, “anticipate”, “continue”, “estimate”, “objective”, “ongoing”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends” or the negative of these words or other variations on these words or comparable terminology. More particularly, and without limitation, this news release contains forward-looking statements and information concerning expectations regarding the cash-flow position of the merged company, the Caylloma royalty, the ability of the merged company to raise capital and sourcing offtake transactions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Actual results, developments and timetables could vary significantly from the estimates presented. Readers are cautioned not to put undue reliance on forward-looking statements. Lemuria and Nueva Granada disclaim any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, Lemuria and Nueva Granada undertake no obligation to comment on analyses, expectations or statements made by third parties in respect of Lemuria or Nueva Granada, its financial or operating results or its securities.
Contact: Lemuria Royalties Corp/Nueva Granada Gold Corp Abraham Drost, M.Sc. P.Geo; CEO/Director email@example.com www.ng.gold Ph: 1-807-252-7800