Gold X Mining – Fast Track to Mining License

VANCOUVER, British Columbia, May 27, 2020 (GLOBE NEWSWIRE) -- Gold X Mining Corp. (TSX-V: GLDX, OTCQX: SSPXF) (“Gold X” or the “Company”) is pleased to provide an update on its ongoing licensing activities on the Toroparu Project in Guyana. This announcement is a follow on to the May 5^th news release on the status of engineering studies at the Toroparu Project.

Highlights

• The March 2020 option purchase of the Guyanese partner’s interest in the Toroparu Project by Gold X’s operating subsidiary, ETK Inc., paves the way for final approval of the Mining License to construct and operate the Toroparu Gold Mine.
• The Licensing process for the Toroparu gold project in Guyana has now entered the final stage of regulatory review of all documentation under the updated Mining License Application submitted in October 2019.
• The Mining License will authorize ETK to build and operate a mine over an initial term of 20 years with provisions for extension on the application of ETK.
• Gold X will complete a feasibility in advance of a production decision for the project.             

Permitting History

An infographic accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/57fce400-a7a7-4270 ...

In November 2011, the Company and ETK Inc., its Guyana subsidiary, entered into the Toroparu Mineral Agreement (“TMA”) with the Government of Guyana (“GoG”), the first mineral development agreement completed in the gold sector in Guyana since the Omai Mine in 1991.  Mineral development in Guyana is primarily regulated by the Guyana Geology & Mines Commission (“GGMC”) and the Ministry of Natural Resources (“MNR”). ETK has operated in accordance with the TMA since it was signed in 2011.

The Mineral Agreement provides for (i) the waiver of import duties and VAT (value added tax) for imported equipment and supplies required to develop the Project, (ii) a corporate tax rate of 27.5%, (iii) 20% straight-line depreciation of fixed assets, (iv) the deductibility of Guyana based exploration and development expenses and (v) the treatment of royalties as an expense in the calculation of taxable income. The TMA contains fiscal stability and most-favored-nation clauses in favor of the Company.