TORONTO, June 28, 2018 (GLOBE NEWSWIRE) — Sage Gold Inc. (“Sage Gold” or the “Company”) (TSX-V:SGX) has received a Notice of Intention to Enforce Security under section 244 of the Bankruptcy and Insolvency Act from Cartesian Royalty Holdings (“CRH”) on behalf of CRH Funding II Pte. Ltd., in respect of amounts owing under the Gold Payment Agreement (“GPA”) dated November 17, 2016. The Company is taking the notification seriously and is reviewing and considering its alternatives. The Company will continue in its good faith attempts to negotiate a resolution to this matter with CRH that is in the best interests of all stakeholders. There can be no assurance that negotiations, if any, will be successful.
Suspension of Bulk Sampling Program
The Company has suspended its bulk sampling program following the completion of its most recent mill run. Approximately 5,462 tonnes of mineralized material was processed by the custom mill facility yielding approximately 310 ounces of gold. In total, 33,963 tonnes of mineralized material have been processed from October 2017 to May 2018, yielding approximately 2,164 ounces of gold.
The Company has gained significant insight and knowledge into the Clavos deposit through this bulk sampling program, additional drilling and geological mapping. Under normal circumstances, the Company’s next steps would be to complete an updated Mineral Resource estimate and revised mine plan. However, since disclosing that the Company had been served with a Notice of Default by CRH, notifying the Company that it was in default of the GPA, the Company has been unable to raise the capital necessary to complete these necessary steps.
In light of this and the Company’s current financial situation, the Company is taking steps to reduce all but critical expenditures. These steps include instructing the Company’s mining contractor, who has supplied substantially all the labour at the Clavos Project, to reduce staffing costs to essential care and maintenance personnel only.
Resignation of Director
The Company announces that Gary Robertson has submitted his resignation to the board of directors. The Board wishes to extend its thanks to Mr. Robertson for his many years of service to the Board and the Company.
About Sage Gold
Shares Outstanding: 110,183,926
The Company is a mineral exploration and development company which has primary interests in near-term production and exploration properties in Ontario. Its main properties are the Clavos Gold property, 100% owned, in Timmins and the 100% owned Onaman property and other exploration properties in the Beardmore-Geraldton Gold Camp. Technical reports and information relating to the properties can be obtained from the System for Electronic Document Analysis and Retrieval (“SEDAR”) website at www.sedar.com and from the Company’s website at www.sagegoldinc.com.
CAUTIONARY STATEMENT: 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 may contain forward looking information and the Company cautions readers that forward looking information is based on certain assumptions and risk factors that could cause actual results to differ materially from the expectations of the Company included in this news release. This news release includes certain “forward-looking statements”, which often, but not always, can be identified by the use of words such as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management’s expectations. Forward-looking statements include estimates and statements with respect to the Company’s future plans, objectives or goals, to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, metallurgical processing, project development, reclamation and capital costs of the Company’s mineral properties, and the Company’s financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as, but are not limited to: failure to identify mineral resources; failure to convert estimated mineral resources to reserves; the preliminary nature of metallurgical test results; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; political risks; uncertainties relating to the availability and costs of financing needed in the future; changes in equity markets, inflation, changes in exchange rates; fluctuations in commodity prices; delays in the development of projects; capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry; and those risks set out in the Company’s public documents filed on SEDAR. This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company’s forward-looking statements. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.