Ecuador mineral exports could fall by some 20% this year, says official
Mining exports were worth $3.3 billion for Ecuador in 2023.
Vancouver-based True Gold Mining Inc. (TSX VENTURE:TGM) will receive an invest boost of $23,450,931 from Liberty Metals & Mining Holdings, a subsidiary of Liberty Mutual Insurance, according to this press release Thursday.
The investment involves “a combination of a non-brokered private placement of True Gold common shares as well as the sale of a 2% net smelter return royalty on the company’s interest in the Karma Gold Project in Burkina Faso.”
Summary terms of the transaction:
- Purchase of 52,755,248 Shares at a price of $0.33 per Share for gross proceeds of approximately $17.4 million
- Purchase of the Royalty for a purchase price of approximately $6.04 million. The Royalty is subject to the following repurchase options retained by True Gold:
- 50% of the Royalty may be repurchased subsequent to the third anniversary of commencement of commercial production at fair market value
- 50% of the Royalty may be repurchased on March 31, 2014 for approximately US$12.5 million
- LMM’s right to nominate one individual to True Gold’s Board of Directors as long as LMM’s percentage equity ownership is at least 7.5%
- Participation right for LMM to maintain its pro-rata equity ownership, if LMM’s percentage equity ownership is at least 7.5%
Read more on the Karma Gold project here.
Sources: True Gold, Stockhouse, The Canadian Mining Journal
Comments
sean
great
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