Vancouver, British Columbia--(Newsfile Corp. - June 23, 2016) - Coral Gold Resources' (TSXV: CLH) shares nearly doubled in price
on the sale of some of its Nevada properties to a Barrick Gold subsidiary. Barrick Cortez is purchasing Coral Gold's Robertson
Property, which is almost surrounded by Barrick.
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Properties included in the transaction are the Core, Gold Ridge, Excluded and the RUF mining claims, which cover approximately
8,480 acres, leaving Coral Gold with a portfolio of strategically-located claim blocks along the Cortez gold trend, including the
properties known as the Norma, Saas, Eagle and JDN mining claims.
Highlights of the transaction include:
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A cash payment of US$15.75 million on closing
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The return of 4,150,000 shares of Coral held by Barrick, which will be cancelled
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A sliding scale of 1% to 2.25% net smelter returns royalty
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In the event the Robertson Property is not placed into production by December 31, 2023, Barrick will begin making advance
royalty payments of US$500,000 annually
For complete details please refer to the June 21st news release.Barrick will also assume all liabilities relating to the
Robertson Property, and will provide replacement security for the reclamation bond.
David Wolfin, CEO, stated: "On behalf of Coral's Board of Directors and management team, I am very pleased to announce this
exciting transaction which creates immediate substantial value for Coral shareholders through the Cash Consideration and Share
Reduction, in addition to the potential for long term value for shareholders through the NSR. Barrick, with its existing mines and
infrastructure in the area and proven operational expertise, was always the ideal party to put Robertson into production. With this
continued commercial relationship with Barrick through the NSR, Coral shareholders will have the opportunity to participate and
benefit from expected future gold production at Robertson, additional resource growth potential at Robertson and will also have
economic returns that will substantially improve if gold prices increase over Robertson's mine life. Upon closing of this
Transaction, Coral will have a very strong balance sheet as compared to its very limited financial resources currently, which
exposed its shareholders to significant dilution if Robertson was to be advanced in any meaningful way. In fact, as opposed to
future potential dilution, and as a result of this Transaction, Coral's basic shares outstanding will be reduced by 8.7%,
preserving the value created for the benefit of the remaining Coral shareholders."
Management stated that after adjusting for the share reduction, based on the company's number of shares outstanding, the cash
consideration alone is equal to approximately CDN$0.46 per share. The shares closed at $0.34 on June 21st.
The company has scheduled a general meeting for July 22nd, to seek shareholder approval.
For more information, please visit the company's website, www.coralgold.com, call
604-682-3701 or email ir@coralgold.com.
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