Origin Gold Signs Definitive Agreement for Acquisition of Colombian Gold Project

TORONTO, Oct. 28, 2020 (GLOBE NEWSWIRE) -- Origin Gold Corporation (“Origin Gold” or the “Company”) (TSXV: OIC) is pleased to announce that it has entered into definitive documentation dated October 26, 2020 (collectively, the “Definitive Agreement”) respecting the Company’s previously announced acquisition 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”). A map with further details of the Assets is provided below.

Key Highlights:

• Acquisition of a company that indirectly holds or will hold 26 mining claim titles and applications in Colombia from Bullet Holding Corp. (“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 equity securities (“Securities”) for proceeds of greater than US$3 million (the “Financing”), that number of Securities equal to US$3 million (approximately C$4 million) divided by the price of the Securities in the Financing;
  • on the one-year anniversary of the execution of the Definitive Agreement, that number of common shares of the Company (the “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 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 on the entire Otu Central Project, with the exception of production from mining title no. T4638005, which is already affected by a 5% net smelter return royalty payable to a third party.
• Origin Gold is acquiring the Assets free of debt along with any related infrastructure.
• Bullet will contribute exploration expertise and community relationships developed during several years of grassroots exploration.
• The Acquisition is expected to be completed no later than March 31, 2021.
• Completion of the Acquisition remains subject to the satisfaction of customary conditions precedent, including, inter alia, approval of the TSXV and the provision of applicable legal opinions concerning the title to the Assets.