Replaces Existing Net Production Royalty VANCOUVER, BC, Nov. 8, 2021 /PRNewswire/ - GoldMining Inc. (the "Company" or "GoldMining") (TSX: GOLD) (NYSE American: GLDG) is pleased to announce that BRI Minerao Ltda. ("BRI"), a wholly-owned subsidiary of the Company, has completed a transaction to replace the remaining 1.33% net production royalty on the Company's Cachoeira Project in Brazil, with a 0.5% net smelter return royalty ("NSR") including a buy-back right to repurchase half of the NSR. Pursuant to the agreement with the royalty counterparty, BRI paid in Brazilian Reais the equivalent of US$100,000 in cash and delivered 324,723 common shares of the Company to the counterparty in settlement of a previously announced claim for pre-production royalties by the counterparty. Under the terms of the buy-back, the Company has a period of seven years to elect to purchase half of the NSR (0.25%) upon payment in Brazilian Reais the equivalent of US$250,000.
Alastair Still, CEO of GoldMining, commented, "Since acquiring the Cachoeira project in 2012, we have completed various initiatives including engineering and environmental studies and negotiating more attractive royalty structures that can support future development. This transaction enhances the value of our Cachoeira Project by replacing an existing net production royalty that included an annual pre-production payment, with an NSR royalty on more favourable terms including a buy-back provision to acquire half of the NSR and no pre-production payments. It is yet another example of how we will continue our disciplined approach of unlocking value from our portfolio of gold and gold-copper projects located throughout the Americas."
https://www.prnewswire.com/news-releases/goldmining-replaces-existing-net-production-royalty-on-the-cachoeira-project-with-net-smelter-royalty-with-buy-back-option-301417976.html