Sixty North Gold Amends and Extends Its Earn-In Agreement with New Discovery Mines Ltd.
Vancouver, British Columbia--(Newsfile Corp. - April 28, 2020) - Sixty North Gold Mining Ltd. (CSE: SXTY) (FSE: 2F4) (OTC Pink: SXNTF) (the "Company" or "Sixty North Gold"). Further to the Company's press release dated October 21, 2019, the Company is pleased to announce that it has amended its agreement with New Discovery Mines Ltd. ("NDM") to earn a 100% interest in the past producing Mon Gold Property. The new agreement revises the milestones for the Company's right to earn up to a 100% interest in the Mon Gold Property, NWT, by incurring Expenditures of at least $6.0 million on the Mon Gold Property (of which $2.4 million has already been incurred), which right has been revised to the following:
- The Company shall pay NDM an extension fee of $150,000 on or before June 30, 2020;
- On or before September 30, 2020, the Company shall deposit an additional $1.5 million to NDM to be spent on the Property as agreed on the last approved budget; however, if substantial progress on a new equity financing for the Property is made by that time, the parties in good faith shall agree to extend this date to October 31, 2020;
- On or before April 30, 2021, the Company shall deposit to NDM the balance of funds to make the Company's total investment in the Property equal to $6 million; however, if substantial progress on a new equity financing for the Property is made by that time, the parties in good faith shall agree to extend this date to May 31, 2021; and
- All other terms and conditions of the Earn-In Agreement not in conflict with the above shall remain in full force and effect.
NDM is a private company partly owned and controlled by David Webb, Ph.D., P. Geol., P. Eng., the President & CEO of Sixty North Gold.
John Campbell, Chairman and CFO of Sixty North Gold, said, "We are pleased to have agreed with NDM the revised schedule to funding the key milestones for the company, which should allow us to build the winter road and deliver equipment to site early in 2021, in preparation for a bulk sample of the underground, former-producing A-Zone. This schedule revision was required due to the disruptions to capital markets caused by the COVID-19 crisis."
About the Company
Sixty North Gold is engaged in acquisition, exploration and development of mineral properties. Its principal target is the exploration for gold on the Mon Gold Property, 40 kms north of Yellowknife, NWT. The Mon Gold Property consists of 11 contiguous mining leases and 3 mineral claims, comprising an aggregate 1,536.92 acres, located in the South MacKenzie Mining District, NWT. For more information, please refer to the Company's Prospectus dated January 19, 2018 available on SEDAR (www.sedar.com), under the Company's profile.
ON BEHALF OF THE BOARD OF DIRECTORS
Chairman, CFO and Director
Statements about the Company's future expectations and all other statements in this press release other than historical facts are "forward looking statements". Such forward-looking statements are based on numerous assumptions, and involve known and unknown risks, uncertainties and other factors, including risks inherent in mineral exploration and development, which may cause the actual results, performance, or achievements of the Company to be materially different from any projected future results, performance, or achievements expressed or implied by such forward-looking statements. Further details about the risks applicable to the Company are contained in the Company's Prospectus dated January 19, 2018 available on SEDAR (www.sedar.com), under the Company's profile.
THE CANADIAN SECURITIES EXCHANGE HAS NOT APPROVED NOR DISAPPROVED THE CONTENT OF THIS PRESS RELEASE.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/54957