February 26, 2020 – Vancouver, British Columbia – Vangold Mining Corp (the “Company” or “Vangold”) (TSXV:VAN).
The Company is pleased to announce that it has reached an agreement (the “Settlement Agreement”) with Astor Holdings Inc. (“Astor”), of Georgetown Guyana, and Shooting Star Acquisition Corp. (“Star”), a capital pool company listed for trading on the TSX Venture Exchange (the “TSXV”), whereby the Company has assigned all rights, title, and interest in the draft NI 43-101 technical report commissioned by Vangold on the Tassawini gold project in Guyana, South America (the “Tassawini Report”) in consideration for Astor and Star agreeing to assume certain debts owed to Vangold by Aventura Gold Corp. (“Aventura”) following the termination of the reverse takeover transaction between the Company and Aventura announced October 10, 2019.
As background, by letter of intent dated October 16, 2019 between Astor and Star, Star has agreed to acquire the Tassawini gold project in Guyana, South America in a transaction that will constitute Star’s “qualifying transaction” for the purposes of the policies of the TSXV as described in Star’s news release dated October 24, 2019 (the “Star Transaction”). The Star Transaction is subject to the approval of the TSXV and the concurrent closing of an equity financing by Star of up to C$10,000,000 at a price of C$0.20 per share on terms mutually acceptable to Star and Astor.
Under the terms of the Settlement Agreement, Vangold has assigned the Tassawini Report to Astor in consideration for Star and Astor agreeing to assume, subject to and effective upon closing of the Star Transaction, C$250,000 in debt owed by Aventura to Vangold (the “Aventura Debt”) and pay such amount to Vangold as follows:
- an initial payment of C$25,000 cash and 400,000 common shares of Star (“Star Shares”) at a deemed price of C$0.25 per share upon closing of the Star Transaction; and
- a second payment of C$50,000 cash and C$75,000 in Star Shares (based on Star’s 10-day VWAP) anticipated to occur upon Star’s receipt of an environmental impact statement on the Tassawini project.
The Settlement Agreement is subject to the acceptance of the TSXV.
The El Pinguico Mine:
The Company continues to focus on advancing its El Pinguico mine project in Guanajuato, Mexico.
El Pinguico is a high-grade silver and gold deposit that was mined from the early 1890s until 1913. The mining was done exclusively from the El Pinguico and El Carmen veins, which were historically thought to be splays or extensional features off the Mother Vein, or ‘Veta Madre.’
The Veta Madre is associated with a mega fault that outcrops for 25 kilometres and is the most important source of precious metal mineralization in the region. Geologists from the company that mined the deposit historically theorized that the Veta Madre crosses Vangold’s property at depth, underneath the high grade El Pinguico and El Carmen veins, but they did not mine deep enough to test the theory and very limited drilling has been done on the property since production ceased.
Historic stockpiles of mineralized material exist on the surface and underground at El Pinguico which may potentially provide feed to one of several operational mills in the Guanajuato area.
Hernan Dorado, a director of Vangold and a qualified person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects, has approved the scientific and technical information contained in this news release.
About Vangold Mining Corp.
Vangold Mining is an exploration company engaged in the exploration of mineral projects in the Guanajuato region of central Mexico. The Company’s flagship El Pinguico project is a significant past producer of high-grade gold and silver and is located just 7 km south of the city of Guanajuato, Mexico. The Company remains focused on the near-term potential for development and monetization of both its surface and underground stockpiles of mineralized material from El Pinguico.
ON BEHALF OF THE BOARD OF DIRECTORS
Chairman and CEO
For further information regarding Vangold Mining Corp, please contact:
James Anderson, Director, +1 (778) 989-5346
Continue to follow our progress: Web: www.vangoldmining.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains certain forward-looking information and statements, which relate to future events or future performance (including, but not limited to, the recovery of the Aventura debt from Astor and Star and the potential for near term development and monetization of existing stockpiles of mineralized material at the Company’s El Pinguico project in Mexico) and reflect management’s current expectations and beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward-looking statements and information are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected including, but not limited to, market conditions, availability of financing, currency rate fluctuations, actual results of exploration and development activities, environmental risks, future prices of gold, silver and other metals, operating risks, accidents, labor issues, delays in obtaining governmental or regulatory approvals and permits, and other risks in the mining industry. In addition, the recovery of the Aventura debt from Astor and Star is subject to and conditional upon the successful completion of the Star Transaction, which completion is not within the Company’s control. All the forward-looking statements and information made in this news release are qualified by these cautionary statements and those in our continuous disclosure filings available on SEDAR at www.sedar.com. These forward-looking statements and information are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required by applicable law.