DGAP-News

Golden Dawn Announces the Signing of a Letter of Intent for a Metal Purchase Agreement (MPA) with RIVI Capital for the Greenwood Project

DGAP-News: Golden Dawn Minerals Inc. / Key word(s): Miscellaneous
Golden Dawn Announces the Signing of a Letter of Intent for a Metal Purchase
Agreement (MPA) with RIVI Capital for the Greenwood Project

21.07.2016 / 20:03
The issuer is solely responsible for the content of this announcement.

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Vancouver, British Columbia--(Newsfile Corp. - July 21, 2016) - Wolf Wiese,
CEO of Golden Dawn Minerals Inc. (TSXV: GOM) (FSE: 3G8A) (the 'Company' or
'Golden Dawn') announces signing (LOI) Letter of Intent, for a Metal
Purchase Agreement (MPA) With RIVI Capital of San Francisco. The MPA is a
part of the overall financing strategy consisting of Debt, Equity, and the
Metal Purchase Agreement (MPA) described below. This will fund the capital
expenditures to resume mining, processing and purchase of the Greenwood
Project consisting of the 220/400 t/d Mill, the Lexington and Golden Crown
Mines, AKA the Greenwood Project; Located 500 km, East of Vancouver B.C.
near the City of Greenwood on Trans Canada Hwy # 3.

The terms of the agreement are as follows: RIVI shall be entitled to twelve
percent (12%) of the total combined gross production of gold ('Au') ounces
limited to the Lexington and Golden Crown Mines, at a gold-equivalent
('GEO') price per ounce of four hundred dollars US $ 400 for the life of
the Project. RIVI will purchase the Metal Stream for a total of US
$4,000,000 in two tranches; US$3,000,000 upon signing the Final Agreement,
and the second tranche of US $1,000,000 four months post reaching 85%
production levels of the Greenwood project. The company will pay 10%
interest per annum on the first US $3,000,000 advanced until 85% of 200 t/d
production is achieved. The MPA includes the Lexington and Golden Crown
Gold/ Copper Mines. The 100% company owned May Mac Silver/Gold Mine with
its ancillary Mill and tailings pond located 15 Km from the Greenwood
Projects Mill is excluded from this Metal Purchase Agreement (MPA). The
Lexington and Golden Crown Mines do not have a permanent NSR (net smelter
return) obligation, except for a fraction of the Golden Crown Mine Claims.
Thus the impact of the MPA on the economics calculated in the recent PEA
(JUNE 2016) is minimal.

Stream Reduction. Upon delivery of a minimum of 15,000 ounces of gold from
the two Mines (Lexington and Golden Crown), and providing the one year
average price of gold is above US$1200 per ounce, the Company shall have
the option to reduce the Metal Stream from 12% of gross production to 6%,