Romios Announces Amendment to Agreement with Crystal Lake to Option Romios’ Newmont Lake Property
TORONTO, ONTARIO, March 22, 2019, Romios Gold Resources Inc. (“Romios” or the “Company”) (TSX.V-RG) (OTC-PK: RMIOF) (Frankfurt: D4R) today announced that the agreement (the “Definitive Agreement”) with Crystal Lake Mining Corp. (“CLM”) whereby Romios’ Newmont Lake Property (“Newmont Lake”) has been optioned to CLM has been amended to extend the date for CLM to provide confirmation that it has funding in place to finance its commitment to expend $3 million on an agreed exploration program on Newmont Lake before September 20, 2019. The Definitive Agreement now calls for the confirmation of the funding to be made on or before March 29, 2019, in consideration for which the second and third cash option payments of $250,000 each due to Romios are now payable on or before March 29, 2019, with the final $250,000 option payment due within 90 days from March 29, 2019. CLM is undertaking a private placement financing to fund the exploration program on Newmont Lake and satisfy the conditions of the amended Definitive Agreement.
The amended Definitive Agreement now provides that CLM can earn a 100% working interest in Newmont Lake in consideration for, among other things, the issuance of 12 million common shares of CLM to Romios (4,000,000 have been issued); the payment of an additional $1.75 million in cash option payments, with the remaining payments being $500,000 by March 29, 2019, $250,000 payable within 90 days of March 29, 2019 and a further $1 million payable upon CLM earning its 100% interest in Newmont Lake through the expenditure of $8 million on the Property over a 3-year period. CLM is required to spend $3 million on Newmont Lake by September 20, 2019, and present an exploration program and budget and provide evidence that the funds are available for the program by March 29, 2019.
If CLM is successful in acquiring Newmont Lake, Romios will receive a 2% Net Smelter Returns Royalty (“2% NSR”) on Newmont Lake, or on any after-acquired claims within a 5 km radius of the current boundaries of Newmont Lake. The 2% NSR may be reduced at any time to a 1% NSR on the payment of $2 million per 0.5% NSR. In the event an NI-43-101 compliant resource estimate is issued in respect of any part of Newmont Lake which exceeds 1 million ounces of gold equivalent resources (being the sum of Indicated and Inferred), Romios will be issued an additional 2 million common shares of CLM. It will also receive an additional 1 million common shares of CLM for each additional full 1 million ounces of gold equivalent resource on and part of Newmont Lake.
About Romios Gold Resources Inc.
Romios Gold Resources Inc., a progressive Canadian mineral exploration company established in 1995, is engaged in precious and base metal exploration primarily focused on gold, silver and copper on its properties in the Golden Triangle area, northwestern British Columbia. In addition to the properties in the Golden Triangle area, Romios holds a 100% interest in the Lundmark-Akow Lake property in Ontario, the LaCorne Property in Quebec and the Scossa Property in Nevada. It also holds a 2% Net Smelter Return Royalty on the Hislop property in Ontario.
For further information, please contact:
Tom Drivas, President and Director, (tel) 416-221-4124, (fax) 416-218-9772 or (email) [email protected]
Frank van de Water, Chief Financial Officer and Director, (tel) 416-221-4124 or (email) [email protected]