The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
Goldrich Mining Company June 23 announced a deal to raise US$1.2 million by selling 12 percent of the cash flows Goldrich receives from its interest in Goldrich NyacAU Placer LLC, a 50-50 joint-venture between Goldrich and NyacAU LLC to mine the various placer gold deposits at Goldrich's Chandalar property in Northern Alaska.
Goldrich will retain its 50 percent ownership in GNP but, after the transaction, will effectively receive about 44 percent of the cash distributions from production.
Chandalar Gold LLC - a non-related company that is purchasing 12 percent of Goldrich's interest - will receive 6 percent of any cash distributions produced.
As part of the purchase, Chandalar Gold also received 2.25 million five-year warrants and an option to acquire an additional 10 percent of the cash flows Goldrich receives from its interest in Goldrich NyacAU Placer.
The option must be exercised before July 1, 2016 to purchase an additional 10 percent of Goldrich's future cash flow in consideration of a one-time cash payment of US$1.3 million.
Commercial production of the Little Squaw placer deposit is on track to begin this summer.
GVC Capital LLC of Greenwood Village, Colo., acting as lead placement agent for the offering and receiving a commission equal to 5 percent of gross proceeds raised, was granted a perpetual undivided 0.5 percent interest in Goldrich NyacAU Placer distributions to Goldrich, and was issued 1.2 million warrants exercisable into one common share of Goldrich for a period of five years at a price of US5 cents per share.
Goldrich's net proceeds from the offering will be used for general working capital purposes and reclamation at Chandalar.
Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.
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