In a news release, Gold Standard Ventures Corp. (GSV:TSX.V; GSV:NYSE) announced a strategic partnership with Orion Mine Finance who has agreed to invest US$22.5 million in the company.
"We are very pleased to announce our strategic partnership with Orion, a strong and proven investor and lender to mining companies who are advancing along the path to potential production. They are now a strategic shareholder of the Company and we look forward to potential financings from them in the future," Gold Standard CEO and Director Jonathan Awde said in the release.
Per the financing agreement, Orion bought from an existing shareholder 17,662,646 common Gold Standard shares at CA$1.12 apiece for a total of CA$19,782,164. Also, Orion will acquire common Gold Standard shares, CA$1,012,385 worth through the market, and CA$6,950,151 worth through a nonbrokered private placement at CA$1.05 per share.
Also, Orion agreed to "provide the Company with a term sheet to provide up to US$200 million of financing support to the Company, following the satisfaction of mutually agreed milestones, to help finance the construction of the South Railroad Project," the release stated.
Gold Standard will grant Orion the right of first offer on any vehicle for financing Gold Standard, such as streaming, royalty, prepay or offtake agreements for precious metals.
The two firms also announced a silver streaming agreement. "Orion will purchase 100% of the silver production from the South Railroad Project and the Jasperoid Wash deposit for the life of mine at a price of 15% of the prevailing market price for silver," the release stated. Orion will make a US$2 million deposit to Gold Standard for the silver stream.
Gold Standard reported that its key milestones for 2020 and 2021 are "advancing our infill drilling, permitting and feasibility study."
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