MONTREAL, QUEBEC, Apr 09, 2015 (Marketwired via COMTEX) — Golden Tag Resources Ltd. (the "Company") (GOG) announces the signing of a third amendment to its Joint Venture Agreement ("JVA") with Golden Minerals Company subsidiary ECU Silver. The JVA governs the parties' San Diego multi-million ounce silver exploration project in Mexico. Under the first JVA amendment, Golden Tag acquired the right to increase its interest in the JV from 50% to 60% by solely funding the next US$3 million of additional exploration expenses by March 24, 2014. In the second JVA amendment the Company (see Company news release July 30, 2013) obtained a 12 month extension until March 24, 2015 in return for funding 100% of $625,000 on a drilling program focused on near surface higher grade veins. This program would take place after the Company has earned its 60% interest in the property by completing the US $3 million obligation pursuant to the first JVA amendment.
Under the recently signed third JVA amendment, Golden Tag has obtained a two year extension to March 24, 2017 to spend the remaining approximate $US868,000 under the first JVA amendment. Golden Tag would then be obligated to fund the next $625,000 of expenditures as agreed under the second JVA. The consideration paid to Golden Minerals for this extension is an amount of $5,000 and the issuance of 5,000,000 common shares of the Company subject to the approval of the TSX-V. Additionally, Golden Tag is obligated to spend the remaining earn-in costs on an exploration program to establish definition of near surface mineralized veins generally above the 1200 metre elevation level (within 400 to 500m from surface).
The extension will give the Company more flexibility to raise the required funds to complete the earn-in, and thereby potentially further decrease the dilutive effect in the Company's share structure in the continuing poor market conditions in the junior resource sector.
The Company's news releases of February 26, 2013 and March 4, 2013 provide a summary of the updated NI 43-101 Mineral Resource estimate on the San Diego property. The actual updated report can be viewed at the Company's website atwww.goldentag.ca.
Golden Tag is focused on exploration for high-grade gold and silver deposits in Canada and Mexico. Golden Tag has 53,426,558 issued and outstanding shares and has no outstanding debt.
Contacts:
Golden Tag Resources Ltd.
Marc A. Carrier
President & CFO
(514) 426-8542
(514) 426-8543 (FAX)
[email protected]
www.goldentag.caSOURCE: Golden Tag Resources Ltd.
