#Canada #Tonopah #A2Gold #Bolo Gold #Super Gold

A2Gold Finalizes Sale of Bolo Gold Project

A2Gold Corp., a notable player in the gold mining industry, announced a significant step in its strategic transition by entering a definitive Mining Property Purchase and Sale Agreement with Super Gold Mining Corp. for their Bolo Gold Project. This deal is valued at a base price of $1.5 million, with the potential for future payments totaling up to $2.8 million pending on mineral resource milestones.

Transaction Overview

The Bolo Gold Project, located in Nye County, Nevada, comprises 187 unpatented lode mining claims alongside the Uncle Sam patented mining claim. The primary aim of this transaction aligns with A2Gold's current strategy to concentrate their resources on more pivotal projects, specifically the Eastside and Taylor ventures. By selling Bolo, A2Gold aims to unlock value from non-core assets while also maintaining exposure to potential future developments through equity in Super Gold.

Upon completion of the sale, A2Gold will receive common shares in Super Gold valued at $1.5 million, specifically 3,750,000 shares priced at C$0.40 per share. In addition to this upfront payment, Super Gold will assume responsibility for approximately $198,500 in reclamation bonding, which will free up A2Gold's capital currently tied within those funds. Beyond these initial terms, A2Gold stands to gain up to C$2.4 million in milestone payments based on the discovery and classification of gold-equivalent resources in the upcoming years. An additional cash payment of C$400,000 will be given upon the completion of a qualifying Preliminary Economic Assessment (PEA).

A2Gold’s CEO, Peter Gianulis, expressed optimism regarding the transaction, stating that it not only monetizes a non-core asset but also preserves potential financial gain. He emphasized the importance of this initiative for A2Gold's future endeavors, focusing on projects with the greatest opportunity for shareholder value.

Terms and Conditions of the Sale

The detailed terms of the sale continue to ensure that A2Gold retains a vested interest in the future success of the Bolo project. Super Gold will be required to engage external qualified professionals to carry out the necessary exploration and technical evaluations to support initial mineral resource estimates within two years following the sale. Payment milestones are clearly defined:

• - For 200,000 to 399,999 AuEq ounces, A2Gold may receive C$500,000.
• - For 400,000 to 599,999 AuEq ounces, the payment increases to C$800,000.
• - For 600,000 to 799,999 AuEq ounces, A2Gold can obtain C$1,100,000.
• - Further, for 800,000 to 999,999 AuEq ounces, A2Gold can expect C$1,500,000, and for 1,000,000 AuEq ounces or greater, C$2,400,000.

Additionally, the agreement includes provisions that will protect A2Gold's deferred payments should Bolo be sold or monetized again during the initial two-year window following the closing of this agreement. If Super Gold undertakes a qualifying transaction during this period that results in a total consideration exceeding C$25 million, A2Gold will earn all outstanding milestone payments.

Conclusion

Closing of this deal is anticipated in the upcoming weeks, contingent upon the completion of several outlined conditions such as the establishment of new reclamation bonding and the confirmation of operational plans. A2Gold is well positioned, controlling significant mineral resources across other projects, notably Eastside and Taylor, which together showcase promising growth potential and supported exploration programs.

In summary, the sale of the Bolo Gold Project signifies A2Gold's commitment to refining its portfolio and focusing on projects that promise the highest returns, demonstrating a strategic move in an ever-evolving mining landscape. This development not only positions A2Gold well, but also sets the stage for Super Gold Mining Corp. to advance the Bolo Project under committed management.