Golden Arrow Resources Corp. (GRG:TSX.V; GARWF:OTCQB; G6A:FSE) announced in a news release it entered into an agreement to sell its 25% interest in Puna Operations to SRR Mining, its sole joint venture partner in the entity, for CA$44.4 million.
The total consideration going to Golden Arrow will consist of CA$3 million in cash, CA$25.9 million in common shares of SSR Mining and CA$14.5 million in cash for repaying in full at closing the outstanding principal and accrued interest Golden Arrow owes under the July 2018 credit agreement with SSR Mining. Consideration also includes CA$1 million to be generated through the return, for cancellation, of 4,285,714 Golden Arrow common shares that SSR Mining owns.
Also for Golden Arrow, the company notes the transaction will afford it a direct stake in SSR Mining and a low-risk exposure to Puna Operations. It will strengthen the balance sheet of the Vancouver-based exploration and production firm and provide it with financial flexibility. Finally, Golden Arrow will be able to focus entirely on its other assets as well as finance, explore, develop and monetize additional mining projects.
"The sale of our equity position in Puna Operations is a landmark achievement for the company," Golden Arrow Executive Chairman, President and CEO Joseph Grosso said in the release. "The transaction provides Golden Arrow with a strengthened financial position to focus on delivering shareholder returns through the exploration and development of our exciting exploration portfolio in South America."[NLINSERT]
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Golden Arrow Resources, a company mentioned in this article.