Origin Gold to Acquire Gold Project in Colombia

TORONTO, July 09, 2020 (GLOBE NEWSWIRE) -- Origin Gold Corporation (“Origin Gold” or the “Company”) (TSXV: OIC) is pleased to announce that it has entered into a binding letter of intent with Bullet Holding Corp. (“Bullet”), a private company, pursuant to which the Company will acquire 100% of a gold mining project in Colombia known as the Otu Central Project (the “Acquisition”). The Otu Central Project consists of interests in 26 mining claim titles and applications in the Segovia/Zaragoza regions of Antioquia in Colombia (collectively, the “Assets”).

Key Highlights:

• Acquisition of a company with 26 mining claim titles and applications in Colombia from Bullet for total consideration of US$9 million (approximately C$12.2 million), payable as US$1 million (approximately C$1.36 million) in cash and with the remainder payable as follows, in each case subject to approval of the TSXV Venture Exchange (the “TSXV”):
  
  
  • following completion of a private placement of the Company’s common shares (the “Shares”) for proceeds of greater than US$3 million (the “Financing”), that number of common shares equal to US$3 million (approximately C$4 million) divided by the share price of the Financing;
    
    
  • on the one-year anniversary of the execution of the definitive agreement entered into in connection with the Acquisition (the “Definitive Agreement”), that number of common shares equal to US$2.5 million (approximately C$3.4 million) divided by the 30-day volume weighted average price (“VWAP”) of the Shares on the TSXV for the period immediately prior to the date such shares are issued; and
    
    
  • on the two-year anniversary of the execution of the Definitive Agreement, that number of common shares equal to US$2.5 million (approximately C$3.4 million) divided by the 30-day VWAP of the Shares on the TSXV for the period immediately prior to the date such shares are issued.
    
    
• Bullet will retain a perpetual 2% net smelter return royalty affecting the entire Otu Central Project.
  
  
• Origin Gold is acquiring the Assets free of debt and will also acquire the related infrastructure.
  
  
• Bullet will contribute exploration expertise and community relationships developed during several years of grassroots exploration. 
  
  
• The Acquisition is expected to be completed by no later than December 31, 2020.
  
  
• The Acquisition remains subject to a number of conditions, including the preparation and execution of the Definitive Agreement.

Jaime Lalinde, Origin Gold’s President and CEO, commented: