- Transaction increases royalty exposure on the Barrick Gold Corp. (“Barrick”) led joint venture of the Spring Valley Project, Nevada
- Additional royalty option positions Terraco up to 3% NSR coverage on the known Spring Valley gold deposit
- USD$1,000,000 cash infusion
Vancouver, BC, July 29, 2013 – (TSX Venture: TEN). Terraco Gold Corp. (“Terraco” or the “Company“) is pleased to announce that further to its press release dated April 22, 2013, the Company has closed its 3rd royalty transaction on the Spring Valley Project which included a USD$1,000,000 cash infusion.
“We are pleased to complete this 3rd royalty transaction on the Spring Valley Project located in Pershing County, Nevada, which is a Barrick led joint venture with Midway Gold Corp. (“Midway”). Collectively, our three royalty transactions now give Terraco, either by direct ownership or option, up to a 3% net smelter returns (“NSR”) royalty, on this developing project. Terraco management believes that the valuation of this NSR will grow as the project moves towards production and we are pleased that Barrick has continued its accelerated rate of earn-in with Midway on the Spring Valley Project. In 2013, Barrick completed its USD$30,000,000 spending requirement for 60% interest in the project and notified Midway of its intention to spend an additional USD$8,000,000 to earn 70% of the Spring Valley Project. We are also excited, in these tough economic and market times that although we are issuing 800,000 shares of Terraco to the royalty vendor for the royalty assets, we received a USD$1,000,000 cash infusion without issuing additional shares or debt, thus no substantial shareholder dilution. In the last 19 months we have delivered to shareholders, despite unfavorable market conditions, a growing gold focussed asset base and brought USD$6,000,000 in creative funding to the company where our share structure has been left relatively intact. We are very proud of this”, stated Todd Hilditch, President and CEO of Terraco.
The Company continues to maintain a debt-free balance sheet and at closing of this transaction has in excess of CDN$1,800,000 in cash and marketable securities.
For a description of Terraco’s royalty assets, including a royalty map, please follow the below link to our website.
All of the requirements to close, including TSX Venture Exchange acceptance of the transaction, have been completed.
About Terraco Gold
Terraco is a junior mining company with a gold project portfolio that includes a gold royalty and royalty options on the Spring Valley Project (Nevada), which is a joint venture among the world’s largest gold producer, Barrick Gold Corp., and Midway Gold Corp. Terraco also controls over 35 sq km’s of early-stage exploration potential (the Moonlight Project) adjoining the Spring Valley Project joint venture to the north. In addition, Terraco has an advanced-stage gold project in Idaho which hosts a National Instrument 43-101 compliant gold resource.
Terraco is listed on the TSX Venture Exchange under the symbol “TEN”. Please visit Terraco’s website atwww.terracogold.com for additional information.
FOR FURTHER INFORMATION, PLEASE CONTACT:
President and CEO
Tel: (604) 443-3831
Toll free: 1 877 792-6688
Fax: (604) 682-3860
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.
Forward Looking Statements
This news release contains forward looking statements. Although Terraco believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Terraco can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Additional information on these and other factors that could affect Terraco’s operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).