Sage Gold set on consolidation
Sage Gold set on consolidation
– Momentum Public Relations –
Press Release: March 17, 2017
The aggregation of Kirkland Lake Gold (CN:KL) into a far larger beast over the past two years has left the historic Timmins gold camp, Ontario, without a natural consolidator for its multiple small-deposit companies, but it’s a mantle near-production junior Sage Gold (CN:SGX) is happy to assume in the absence of others.
Sage chief executive Nigel Lees told an investor lunch in London this week he did not expect the market to take much notice of the company in its current state, but it would not be in its current state for too much longer.
The first part of the junior’s transformation will be to bring its modest Clavos brownfields, underground project into production.
Clavos has a 316,000 ounce indicated and inferred resource that it plans to mine at a rate of 25,000oz per annum and truck down the road to a mill owned by precious metals producer, Primero Mining (CN:P), which is running severely below capacity.
The life-of-mine arrangement with Primero underpins an initial capital expenditure of just C$8 million for the Clavos start-up, according to a 2013 preliminary economic assessment.
The mine permit was updated in record time – three weeks – which allowed Sage to secure the equity finance to start mining operations.
Much of that money will be spent on dewatering the previously established decline and updating the PEA to a prefeasibility study. Not that Lees considers a PFS necessary for a decision to mine – that has been made – but it provides greater market confidence.
So far, all work is on time and on budget and so Sage will be expecting to be mining by mid-year with the first ore delivered to the mill by end-September.
That will satisfy Lees’ need to see cash flowing from the business. It will also provide the market with confidence in management’s ability to execute on its plans and reassurance Sage is not a company that expects to be perpetually topped up through equity issues.
Though the commencement of mining operations is seen as the first key step in the company’s evolution, initial work has already started on the Clavos growth strategy.
Surface drilling began this quarter as Sage investigates the potential to grow the resource, which it and former owner Kinross Gold (CN:K) believe has every chance of swelling to 1 million ounces.
That is likely to come from three distinct opportunities.
First and most straight forward will be the inclusion of intercepts that meet the cut-off grade (2.75g/t Au) but fell outside a previous mine plan.
Second, and only slightly more complicated (it will require the drill rig), Sage is testing an untouched area between the Main mineralised zone and the established 960 zone.
And finally, requiring more effort still, will be the pursuit of ounces expected to be delineated at depth below the Main zone, where historic holes have returned exceptional hits such as 65.3g/t Au over 4m, including 374.1g/t Au over 0.7m.
But establishing a 1Moz resource is not going to put Sage on the map in a gold bull market, which is exactly what Lees believes we’re experiencing at the moment, albeit the early stages. He said an element of M&A is inevitable to build the “critical mass” needed to attract institutions.
“We’ll be looking to buy similar size projects to Clavos,” he told Mining Journal, adding there were “five or six” such projects in public and private vehicles in the immediate Timmins vicinity being evaluated.
Asked whether he expected stiff competition for these assets given his assessment of the market as one in a burgeoning bull run, Lees was relaxed. He said Sage was viewed as the district’s natural consolidator, having established itself with the locally “unique” standing as a fully-permitted, fully-financed company.
He said at one point Kirkland Lake may have bought these projects but with that miner having built itself into a position where it is a circa C$2 billion market capitalisation, international producer, few others are left with an appetite for district consolidation at this level.
Meanwhile, playing a supporting role in the Sage development story, is a polymetallic volcanogenic massive sulphide property, which is also in an established mineralised district in Ontario.
The Onaman property is being drilled in tandem with Clavos and is focused on the Lynx copper-gold deposit, though historic exploration results indicate an economic discovery could also include zinc, lead and silver, too. An inferred resource at Lynx was estimated at 1.94 million tonnes grading 1.44{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cu, 39.6g/t Ag and 0.58g/t Au.
However, unless Lynx turns out to be a gold-silver project with base metal credits, it is difficult to see it remaining part of the Sage stable. More likely, exploration success could provide Lees with an opportunity to sell the project into what appears to be a parallel, early-stage bull run in both the copper and zinc markets.
A sale at Lynx would then combine with cash flow from Clavos to build the arsenal for Sage’s consolidation bid in Timmins.
Sage Receives Second Tranche of Clavos Financing
Sage Receives Second Tranche of Clavos Financing
– Momentum Public Relations –
Press Release: March 03, 2017
Sage Gold Inc. (“Sage” or the “Company”) (TSX VENTURE:SGX) has drawn down the second tranche funding of the gold prepayment facility, from Cartesian Royalty Holdings Pte. Ltd. (“CRH”), to fund the ongoing re-opening of its Clavos Project (“Clavos”). The second tranche draw down of $2.0 million was subject to certain conditions which have been fully satisfied.
CRH has provided $9.65 million in gold prepayment financing to Sage. Of this amount, $7.22 million is allocated to the Clavos project. To date, $3.96 million has been received and a third and final tranche of $3.26 million is expected to be drawn down mid-2017 subject to certain conditions.
The Company has now dewatered to the 100 m level of the Clavos underground workings. A definition drill program will soon commence to delineate potential mining stopes at the 100 m level. Further pumping will expose additional potential mining stopes both deeper and to the west of the 100 m level. Surface drilling continues between the 960 zone and the Main mine zone in order to establish continuity along strike and also to potentially delineate additional resources to the east. This surface drill program is expected to be completed in approximately 2 weeks.
Nigel Lees, President and CEO commented, “The current program at Clavos is on time and budget. Historical expenditures by the previous owner and ourselves have exceeded $70 million. Sage is permitted for a 700 tonnes a day operation and has a life-of-mine toll mill contract at the Stock Mill, 10 kilometres away by private road.”
Sage currently plans to complete a reserve estimate and a pre-feasibility study on the Clavos. In the event that a production decision is made that is not based on a feasibility study of mineral reserves demonstrating economic and technical viability prepared in accordance with National Instrument 43-101, readers are cautioned that there is increased uncertainty and higher risk of economic and technical failure associated with such a production decision.
Robert Ritchie P.Eng. is a qualified person under 43-101 (“QP”) and has reviewed and accepts the technical content of this news release.
About Sage Gold
The Company is a mineral exploration and development company with primary interests in advanced exploration properties in Ontario. Its main properties are the 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}-owned Clavos Gold property in Timmins, the 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}-owned Onaman property, and other exploration properties in the Beardmore-Geraldton Gold Camp. Technical reports and information relating to the properties can be obtained from the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com and www.sagegoldinc.com.
Sage (SGX:tsxv) Drills Onaman and Clavos
Sage Drills Onaman and Clavos
– Momentum Public Relations –
Press Release: February 8, 2017
Sage Gold Inc. (the “Company”) (TSX VENTURE:SGX) is pleased to announce the commencement of a drilling program at Sage’s Onaman property in northwestern Ontario. This program is being carried out simultaneously with that underway on the Clavos gold property in Timmins announced on January 19, 2017.
With a history of episodic exploration activity dating back several decades, the Onaman property hosts numerous historical mineralized zones and occurrences that have been partly delineated to date. Hosted in a sequence of hydrothermally altered and tectonized mafic through felsic volcanics and derived volcaniclastics, the Onaman property displays the main features of a typical volcanogenic massive sulphide (“VMS”) system, and is consequently considered to host significant exploration potential. Sage will complete a preliminary program comprising 1,000 meters, drilled into the historical Headway zinc-silver-lead±gold deposit.
As discussed in the Company’s recent Onaman news release, a reassessment of the Lynx deposit – the historical focus of Sage’s exploration efforts on the property, has established that it is a “footwall feeder zone” of the type typically found underlying VMS deposits. The fact that the Headway lies immediately above it where the main mineralized body in a VMS system is typically found renders this historical mineralized zone significant from an exploration perspective.
Nigel Lees, President and CEO, commented: “The Headway and Lynx deposits, hosting a combination of base and precious metals between them, are two important parts of the as yet incomplete Onaman story. This current drilling program will help to further unravel it. It nicely compliments Sage’s ongoing drilling program at the company’s Clavos gold deposit where two holes have been completed between the main mine trend and the 960 zone.”
The juxtaposition of the Lynx deposit in the underlying footwall mafic volcanics, and the Headway deposit in the overlying mixed volcanic sequence (named the “In Between Zone” or “IBZ”), is suggestive of the typical mineralogical zoning seen in VMS systems where copper-dominant mineralization is found lower in the system and zinc-dominant mineralization is found in the upper parts of the system. Both deposits feature a hydrothermal alteration assemblage typical of VMS systems. Whereas both the Lynx and Headway are limited in size and grade to the extent that they have been drilled, to date, the exploration potential of the immediate area given the juxtaposition of these features is considered to be significant.
As a first step toward vectoring in on previously untested targets in this area, Sage is drilling a number of holes into the Headway deposit at and near holes drilled by Headvue Mines in 1951. Historical drilling over a strike lengthy approaching 1 kilometre intersected numerous, mostly narrow intervals of zinc-silver-lead±gold mineralization – up to a few meters wide and ranging mostly in the single digits for zinc and lead and up to and exceeding 100 g/t silver, along with wider intervals up to and exceeding ten meters or more of lower grade zinc-silver-lead±gold mineralization averaging in one-tenth the grade range. Sage geologists believe that this zone may be near a zone of focused hydrothermal discharge and associated metal concentration, and that the lithological, alteration, mineralogical and geochemical data derived from detailed analyses of fresh drill core may provide critical clues enabling them to vector in on previously undetected VMS targets in the immediate area.
The Company will provide additional information and updates regarding its progress at the Onaman and Clavos properties on a timely basis.
The technical content of this news release has been reviewed and approved by Sage’s consulting geologist, Avrom E. Howard, MSc, PGeo, who is a Qualified Person (“QP”) as defined in National Instrument 43-101.
About Sage Gold
The Company is a mineral exploration and development company which has primary interests in near-term production and exploration properties in Ontario. Its main properties are the Clavos Gold property, 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned, in Timmins and the 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned Onaman property and other exploration properties in the Beardmore-Geraldton Gold Camp. Technical reports and information relating to the properties can be obtained from the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com and www.sagegoldinc.com.
Sage Gold (SGX:tsxv) to Conduct Surface Drill Program at Clavos
Sage to Conduct Surface Drill Program at Clavos
– Momentum Public Relations –
Press Release: January 19th, 2017
Sage Gold Inc. (TSX VENTURE:SGX) ‘Sage’ is planning to commence drilling at its Clavos gold property located 32 kms east north east of Timmins, Ontario in the prolific East Timmins Gold Camp.
The program will consist of 1,500 metres of surface drilling involving 7 drill holes commencing next week. Drilling will initially start on the eastern portion of the “Main Mine Trend” of the Clavos deposit hosting significant mineralization in the Contact, Hangingwall (HW) and Footwall (FW) and Sediment Zones.
The current program’s objective is to test a 235 metre gap between the existing underground infrastructure and the 960 Zone from section 514525E and 514765E. Five holes are planned in this area targeting a shallow plunging flexure controlling gold, arsenopyrite, pyrite, quartz vein mineralization located in the altered ultramafics and porphyries flanking the Porcupine Group sediments demarked by the Pipestone Fault structure. The vertical and horizontal continuity of four gold bearing zones will be evaluated between the 1150m elevation and 1080m elevation (mine reference elevations). A systematic drill hole spacing of 60 metres may further define the plunge orientation of some of the high-grade shoots identified within the existing mine infrastructure.
In addition, 2 drill holes are planned on the western end of the Clavos deposit between section 512800E and 512830E. These holes are intended to in-fill gaps in the historic surface and underground drilling beyond the limits of the existing underground workings at the 1125 elevation order to better define new stoping blocks.
Nigel Lees, President and CEO commented: “Sage announced the closing of a $11.5 million financing commitment in November 2016, of which approximately $7.2 million is allocated to fund the development and restart of the Clavos mine. Historical expenditures by St Andrew Goldfields and Sage on the property have exceeded $70.0 million excluding prior expenditures by United Tex-sol, Kinross and Canamax. Dewatering of the Clavos deposit underground workings has commenced and is on time and on budget. Rehabilitation will follow the dewatering process to define the stope blocks and provide underground drill stations to test the down plunge extensions of the existing zones. Sage is permitted to produce 700 tonnes per day and has secured a life of mine milling agreement with Primero Mining’s Stock mill 10 kilometres away.”
The technical content of this news release has been reviewed and approved by Sage’s consulting geologist, Peter Hubacheck, PGeo, who is a Qualified Person (“QP”) as defined in National Instrument 43-101.
Sage currently plans to complete a reserve estimate and a prefeasibility study regarding the Clavos project. In the event that a production decision is made that is not based on a feasibility study of mineral reserves demonstrating economic and technical viability prepared in accordance with National Instrument 43-101, readers are cautioned that there is increased uncertainty and higher risk of economic and technical failure associated with such production decisions.
About Sage Gold
The Company is a mineral exploration and development company which has primary interests in near-term production and exploration properties in Ontario. Its main properties are the Clavos Gold property, 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned, in Timmins and the 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned Onaman property and other exploration properties in the Beardmore-Geraldton Gold Camp. Technical reports and information relating to the properties can be obtained from the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com and www.sagegoldinc.com.
Sage Gold Inc. (SGX:tsxv) Amends Terms of Hard Dollar Private Placement
Sage Gold Inc. Amends Terms of Hard Dollar Private Placement
– Momentum Public Relations –
Press Release: December 21, 2016
Sage Gold Inc. (the “Corporation”) (TSX VENTURE:SGX) announces that it has amended the terms of the Hard Dollar unit as previously announced on December 6th, 2016. The Hard Dollar unit will be priced at $0.11 per Unit versus the previous price of $0.12 per unit. The terms of the half warrant associated with the Hard Dollar unit and the flow through shares remain unchanged. Refer to the press release of December 6th.
Securities issued pursuant to the Offering shall be subject to a four-month hold period commencing on the Closing Date under applicable Canadian securities laws. The Corporation intends to use the net proceeds from the flow through share Offering to incur Canadian Exploration Expenses (CEE) on its eligible projects and the proceeds of the Hard Dollar Units for general working capital purposes.
The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange and the securities regulatory authorities.
The Company is a mineral exploration and development company which has primary interests in near-term production and exploration properties in Ontario. Its main properties are the 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Clavos Gold property in Timmins and the 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned Onaman property including the Lynx copper, gold, silver property and other exploration properties in the Beardmore-Geraldton Gold Camp. Technical reports and information relating to the properties can be obtained from the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com and www.sagegoldinc.com.
Sage Gold Inc. Announces Non-Brokered Private Placement
Sage Gold Inc. Announces Non-Brokered Private Placement
– Momentum Public Relations –
Press Release: December 06, 2016
Sage Gold Inc. (the “Corporation”) (TSX VENTURE:SGX) is pleased to announce that it intends to complete a non-brokered private placement (the “Offering”), subject to regulatory approval. The Offering will consist of the sale of 8 million Hard Dollar Units (“HD Units”) at $0.12 per HD Unit and 6 million Flow-Through shares (“FT shares”) at $0.14 per FT share. Each HD Unit includes one Common Share of the Corporation plus one half (1/2) of one Common Share purchase warrant (each whole warrant, a “Warrant”) for gross proceeds of Cdn$960,000. Each full Warrant entitles its holder to purchase one Common Share (a “Warrant Share”) at an exercise price of $0.24 for a period of 24 months following the Closing Date, whereupon the Warrants will expire. Each Flow-Thorough common share will be issued on a flow-through basis. Total proceeds of the FT shares will be Cdn$840,000. Eligible finders may receive cash and / or compensation shares up to 10{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the Offering.
If the Corporation’s shares trade at or above $0.35 per share for 20 consecutive trading days, the Corporation may, at any time after the expiry of the statutory hold period, accelerate the expiration of the Warrants upon not less than 30 days written notice by the Corporation, and thereafter repurchase any unexercised Warrants at $0.001 per underlying common share.
The Corporation may at its discretion sell additional common share units or flow-through shares to raise additional proceeds of up to twenty-five per cent (25{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}) of the Gross Proceeds of the Offerings.
Securities issued pursuant to the Offering shall be subject to a four-month hold period commencing on the Closing Date under applicable Canadian securities laws. The Corporation intends to use the net proceeds from the FT share Offering to incur Canadian Exploration Expenses (CEE) on its eligible projects and the proceeds of the HD Units for general working capital purposes.
The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange and the securities regulatory authorities.
The Company is a mineral exploration and development company which has primary interests in near-term production and exploration properties in Ontario. Its main properties are the 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Clavos Gold property in Timmins and the 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned Onaman property including the Lynx copper, gold, silver property and other exploration properties in the Beardmore-Geraldton Gold Camp. Technical reports and information relating to the properties can be obtained from the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com and www.sagegoldinc.com.
Sage Gold (SGX:tsxv) Receives $4.39M First Tranche of Gold Prepayment Facility
Sage Receives First Tranche of the Gold Prepayment Facility
– Momentum Public Relations –
Press Release: November 28, 2016
Sage Gold Inc. (the “Corporation” or “Sage”) (TSX VENTURE:SGX) is pleased to announce that it has received the first tranche of C$4.39 million under its C$9.65 million gold prepayment facility with Cartesian Royalty Holdings Pte. Ltd. (“CRH”) entered into on November 17, 2016. The first tranche will fund capital expenditures at Clavos and retire the Corporation’s secured debt.
The equity investment and gold prepayment facility provided by CRH secures a full funding package to bring Clavos back into production. Since September 29th 2016, Sage has completed the following transactions and begun the process of restarting the Clavos project:
- Purchased the 40{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} minority interest in Clavos from Kirkland Lake Gold Inc. for C$1.0 million. Sage now owns 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of Clavos
- Received a Change in Project Status for Clavos and is now permitted for production
- Completed a C$1.85 million equity placement with CRH
- Signed a binding toll milling agreement with Primero Mining Corp.’s Stock Mill
- Executed a C$9.65 million Gold Prepayment Agreement with CRH and received the first tranche of C$4.39 million
- Retired the secured debt
Nigel Lees, President and CEO stated, “We are looking forward to dewatering and rehabilitating the underground workings at Clavos which will allow the Corporation to begin to define the stope blocks and provide underground drill stations to test the down plunge extensions of the existing zones. The change of project status allows Sage to produce up to 700 tonnes a day.”
The prepayment facility of C$9.65 million is part of an overall financing package of C$11.5 million as announced on September 30, 2016 between Sage and Cartesian Royalty Holdings Pte. Ltd. (“CRH”).
Sage currently plans to complete a reserve estimate and a prefeasibility study regarding the Clavos project. In the event that a production decision is made that is not based on a feasibility study of mineral reserves demonstrating economic and technical viability prepared in accordance with National Instrument 43-101, readers are cautioned that there is increased uncertainty and higher risk of economic and technical failure associated with such production decisions.
About CRH
CRH Mezzanine and CRH Funding are wholly-owned subsidiaries of Cartesian Royalty Holdings Pte. Ltd. (“CRH”). CRH offers innovative financing structures with the goal of creating long-term growth and value in world-class gold projects around the globe. CRH is an affiliate of Cartesian Capital Group, LLC, a global private equity firm with proven expertise in assisting closely-held companies develop into global market leaders. Cartesian Capital Group manages more than US$2.4 billion in capital and has offices in New York, Sao Paulo, Shanghai, Warsaw, and Bermuda.
About Sage Gold Inc.
The Corporation is a mineral exploration and development company which has primary interests in near-term production and exploration properties in Ontario. Its main properties are the 100 {92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned Clavos Gold property in Timmins and the 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned Onaman copper, gold, silver property and other exploration properties in the Beardmore-Geraldton Gold Camp. Technical reports and information relating to the properties can be obtained from the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com and www.sagegoldinc.com.
Sage Completes Equity Placement; Buys Kirkland’s 40 Clavos Interest
Sage Completes Equity Placement; Buys Kirkland’s 40{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Clavos Interest
– Momentum Public Relations –
Press Release: November 21, 2016
Sage Gold Inc. (the “Corporation”) (TSX VENTURE:SGX) is pleased to announce that it has completed a C$1.85 million equity investment (the “Equity Investment”) by way of a private placement with CRH Mezzanine Pte. Ltd (“CRH Mezzanine”), and has executed a C$9.65 million secured gold prepayment investment (the “Gold Prepayment”) with CRH Funding II Pte. Ltd. (“CRH Funding”). Both CRH Mezzanine and CRH Funding are wholly-owned by Cartesian Royalty Holdings Pte. Ltd. The Equity Investment and Gold Prepayment comprise of the previously announced financing package of C$11.5 million (the “Financing”) provided by Cartesian Royalty Holdings Pte. Ltd. to fund the development and restart of the Corporation’s Clavos project situated in the Timmins mining camp in Ontario, Canada.
Sage’s President and CEO Nigel Lees commented, “We announced the financial package of C$11.5 million with CRH on September 29th. Since then we have completed the following;
-Purchased the 40{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} minority interest in Clavos from Kirkland Lake Gold Inc. for C$1.0 million
-Received a Change in Project Status for Clavos and is now permitted for production
-Completed a C$1.85 million equity placement with CRH
-Signed a binding toll milling agreement with Primero Mining’s Stock Mill
-Executed a C$9.65 million Gold Prepayment Agreement to retire the current secured debt and finance the Clavos restart
We are looking forward to dewatering and rehabilitating the underground workings at Clavos which will allow the Corporation to begin to define the stope blocks and provide underground drill stations to test the down plunge extensions of the existing zones. The change of project status allows Sage to produce up to 700 tonnes a day.”
About the CRH Equity Investment
Under the terms of the Equity Investment, CRH Mezzanine has invested C$1.85 million for (i) 10,700,000 units (the “Units”) of the Corporation at a subscription price of C$0.10 per Unit, and (ii) 7,800,000 special warrants (the “Special Warrants”) of the Corporation at a subscription price of C$0.10 per Special Warrant. Each Unit consists of one common share and one common share purchase warrant, with each warrant exercisable for one common share at a price of C$0.1575 cents for a period of three years. Each Special Warrant entitles CRH Mezzanine to acquire one (1) Unit for no additional consideration. The Equity Investment has been structured such that CRH Mezzanine will not at any time own more than 19.9{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the issued and outstanding common shares of the Corporation. In addition, CRH Mezzanine has the right to acquire its pro rata share of future equity investments completed by Sage as long as it exercises control or direction over 5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} or more of the issued and outstanding common shares of Sage.
About the Gold Prepayment Agreement
Under the terms of the Gold Prepayment, CRH Funding will provide the Corporation with C$9.65 million payable in three tranches, subject to fulfillment of customary conditions. In consideration, the Corporation will deliver to CRH Funding 15.0{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of gold produced at Clavos commencing on the latter of; (i) the beginning of Commercial Production and (ii) 12 months from the date of payment of the first tranche of the Gold Prepayment, but in all cases no later than December 27, 2017, for a period of 72 months of Commercial Production, subject to a minimum total delivery of 16,100 ounces of gold (“Minimum”) and a maximum of 26,000 ounces of gold (“Maximum”). In the event that the Minimum has not been delivered within 72 months of Commercial Production at Clavos, the delivery obligation will continue until the Minimum has been delivered to CRH Funding. The obligations of the Corporation under the Gold Prepayment are secured against all of the assets of the Corporation, including its interest in the Clavos project.
About the Purchase of the 40{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Clavos Interest
As part of the closing of the Financing, Sage completed the previously announced acquisition of the remaining 40{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} interest in the Clavos project from St Andrew Goldfields Ltd., a wholly-owned subsidiary of Kirkland Lake Gold Inc. The acquisition was completed for C$1.0 million and a 2{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Net Smelter Return Royalty. The C$1.0 million was satisfied from the proceeds raised from the Equity Investment. Sage now owns a 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} interest in the property.
Sage currently plans to complete a reserve estimate and a prefeasibility study regarding the Clavos project. In the event that a production decision is made that is not based on a feasibility study of mineral reserves demonstrating economic and technical viability prepared in accordance with National Instrument 43-101, readers are cautioned that there is increased uncertainty and higher risk of economic and technical failure associated with such production decisions.
Before giving effect to the Equity Investment, Nigel Lees, President and CEO of the Corporation owned and controlled, directly or indirectly 4,282,881 common shares of the Corporation, representing approximately 10{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the issued and outstanding common shares of the Corporation. After giving effect to the Equity Investment, the number of common shares Mr. Lees beneficially owned, directly or indirectly over which control or discretion is exercised was diluted causing his common share ownership to fall below 10{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the issued and outstanding common shares of the Corporation. This notification of the decrease in Mr. Lees share ownership below the early warning reporting threshold is being issued in accordance with National Instrument 62-103, The Early Warning System and Related Take-Over Bid and Insider Reporting Issues. For the purposes of this disclosure, the address of Mr. Lees is 200 University Avenue, Suite 1301, Toronto, Ontario M5H 3C6. . The early warning report respecting the transaction will be filed on System for Electronic Document Analysis and Review (SEDAR) under Sage’s issuer profile. To obtain a copy of the early warning report filed by Mr. Lees, please contact the Corporation at 416-204-3170 or refer to SEDAR under Sage’s issuer profile.
Shares for Debt
Sage further announces that it intends to complete a debt settlement transaction (the “Debt Settlement”) with certain creditors (“Creditors”), providing for the settlement of approximately $112,263 through the issuance of an aggregate of 935,528 common shares of the Corporation (“Common Shares”) at a deemed issue price of $0.12 per Common Share. The Debt Settlement is subject to regulatory approval. The Corporation expects to complete the Debt Settlement shortly after such approval is obtained.
About CRH
CRH Mezzanine and CRH Funding are wholly-owned subsidiaries of Cartesian Royalty Holdings Pte. Ltd. (“CRH”). CRH offers innovative financing structures with the goal of creating long-term growth and value in world-class gold projects around the globe. CRH is an affiliate of Cartesian Capital Group, LLC, a global private equity firm with proven expertise in assisting closely-held companies develop into global market leaders. Cartesian Capital Group manages more than US$2.4 billion in capital and has offices in New York, Sao Paulo, Shanghai, Warsaw, and Bermuda.
About Sage Gold Inc.
The Corporation is a mineral exploration and development company which has primary interests in near-term production and exploration properties in Ontario. Its main properties are the 100 {92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned Clavos Gold property in Timmins and the 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned Onaman copper, gold, silver property and other exploration properties in the Beardmore-Geraldton Gold Camp. Technical reports and information relating to the properties can be obtained from the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com and www.sagegoldinc.com.
Sage Gold (SGX:tsxv) Signs 7 Year Mill Processing Agreement
Sage Gold (SGX:tsxv) Signs 7 Year Mill Processing Agreement
– Momentum Public Relations –
Press Releases: November 17, 2016
Sage Gold Inc. (the “Corporation”) (TSX VENTURE:SGX) is pleased to announce that it has signed a Toll Milling Agreement with Primero Mining Corp.’s (“Primero”) Black Fox-Stock Mill (“Stock Mill”) in Timmins to process up to 200,000 tonnes per year for a total of 1.1 million tonnes over an estimated 7 year mine life from the Clavos Mine. The Stock Mill is situated approximately 10 kilometers from Clavos and is accessed by a private haul road between the two properties.
Sage will be shipping run of mine material to the Stock Mill commencing July 2017 with the aim of running the first batch through the mill in September 2017. The Stock mill is a 2,500 tonnes per day carbon in leach (CIL) mill which is located in Stock Township and was previously owned by St. Andrew Goldfields (now Kirkland Lake Gold) during the 2005-2007 period when St. Andrews was operating the Clavos mine. The current operating management of the Stock Mill were present at the Stock Mill when +100,000 tonnes of Clavos ore was processed. Therefore, the Stock Mill is an ideal place to process the Clavos material given the proximity to the Clavos property and the familiarity of the mill operators with the Clavos material. Also, the haul road between Clavos and the Stock Mill is owned jointly by Sage (upon completion of the acquisition of the 40{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} interest in Clavos held by Kirkland Lake Gold) and Primero. The haul road is not part of the Provincial highway system and Sage will be able to use larger haul trucks between Clavos and the Stock Mill then would be permitted on the Provincial highways.
Sage has received notification that the Ministry of Northern Development and Mines (MNDM) has changed the status of its Clavos gold project from Inactivity to Mine Production and Development. The change in project status allows Sage to begin the process of mine dewatering, mine rehabilitation and eventually to produce up to a maximum daily tonnage of 700 tonnes/day.
Sage currently plans on completing a reserve estimate and a prefeasibility study for the Clavos project. In the event that a production decision is made that is not based on a feasibility study of mineral reserves demonstrating economic and technical viability prepared in accordance with National Instrument 43-101, readers are cautioned that there is increased uncertainty and higher risk of economic and technical failure associated with such production decisions.
About Sage Gold Inc.
The Corporation is a mineral exploration and development company which has primary interests in near-term production and exploration properties in Ontario. Its main properties are the Clavos Gold property in Timmins and the 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned Onaman copper, gold, silver property and other exploration properties in the Beardmore-Geraldton Gold Camp. Technical reports and information relating to the properties can be obtained from the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com and www.sagegoldinc.com.
Sage (SGX:tsxv) Receives Change of Project Status for Clavos Project-Permitted for Production
Sage Gold Receives Change of Project Status for Clavos Project-Permitted for Production
– Momentum Public Relations –
Press Releases: October 31, 2016
Sage Gold Inc. (TSX VENTURE:SGX) (“Sage”) has received notification that the Ministry of Northern Development and Mines (MNDM) has changed the status of its Clavos gold project from Inactivity to Mine Production and Development. The change in project status allows Sage to begin the process of mine dewatering, mine rehabilitation and to eventually produce up to a maximum daily tonnage of 700 tonnes/day.
Nigel Lees, President and CEO commented, “This Change of Project Status is a very significant development for Sage and, together with the recently announced agreement to acquire Kirkland Lake Gold Inc.’s remaining 40{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} minority interest in Clavos, is a major milestone towards completing the previously announced financing package of $11.5 million to fund the restart of Clavos. We expect to close the equity portion of $1.85 million in early November followed by the gold prepayment funding of $9.65 million by the end of November.”
Sage has an approved Production Closure Plan on file with the MNDM from previous mining activities and will be resuming the activities described under the filed Closure Plan. Financial Assurance for the Closure Plan is in place with the MNDM, in accordance with the Ontario Mining Act. Sage has the Environmental Compliance Approvals and Permits to allow for mine dewatering, development and production activities, and will be required to report environmental performance information to regulatory authorities as required by site-specific permits, as well as provincial and federal legislation.
Sage currently plans to complete a reserve estimate and a pre-feasibility study regarding the Clavos project. In the event that a production decision is made that is not based on a feasibility study of mineral reserves demonstrating economic and technical viability prepared in accordance with National Instrument 43-101, readers are cautioned that there is increased uncertainty and higher risk of economic and technical failure associated with such production decisions.
About Sage Gold
The Company is a mineral exploration and development company which has primary interests in near-term production and exploration properties in Ontario. Its main properties are the Clavos Gold property in Timmins and the 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned Lynx copper, gold, silver property and other exploration properties in the Beardmore-Geraldton Gold Camp. Technical reports and information relating to the properties can be obtained from the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com and www.sagegoldinc.com.