Falcon Gold Corp’s (TSXV: FG | 3FA: GR), (OTCQB: FGLDF) shareholders have approved a Spin-Out and the company’s Arrangement Agreement with its wholly owned subsidiary, Latamark Resources Corp.
Pursuant to the Arrangement Agreement, the company will transfer its interest in the option agreement concerning the Esperanza gold project to Latamark in exchange for Latamark issuing to the shareholders of the company, one common share in the capital of Latamark for every 5.8 common shares held in the company, Latamark issuing 5,000,000 common shares to Falcon and Latamark assuming certain liabilities incurred, exploring, or maintaining the property.
On February 9, 2021, the company was able to reinstate the property option for a reduction from the original agreement. The original terms were calling for escalating annual payments over a six-year term totalling US$500,000 and the issuance of 4M common shares with property expenditures of US$1.74M. Falcon was successful in reworking the terms to share payments of 500,000 common shares plus 500,000 warrants to be paid to the vendors and by spending US$350,000 in exploration expenditures to earn an 80% interest in the project.
Upon completion of payments and expenditures, Falcon will hold an 80% interest and the vendors would retain 20% ownership in the property. Following which, for a 30-month period, Falcon reserves the right to purchase the vendors’ 20% remaining interest (for Falcon’s total ownership of 100% of the property) for a further payment of 2M Falcon common shares and a one-time $1.5M payment, which includes a 1% net smelter return (NSR) buyback leaving the vendors with a 1% NSR.
The Esperanza gold-copper-silver property comprises seven mineral concessions covering an aggregate area of 11,072ha. Falcon completed its first exploration work on the Esperanza property and reported on its findings. High-grade gold mineralization is reported to be localized along northwest-southeast-striking linear structures. The Callanas area contains several known veins and Falcon’s sampling included a 50 cm wide chip sample with visible gold that assayed 44.90g/t, 123.2 g/t silver and 0.73% copper and another 50cm chip sample that assayed 26.07g/t gold, 424g/t silver and 1.23% copper.
To find out more please visit www.falcongold.com
