Antler Gold Updates Agreement for Erongo Gold Project
Antler Gold has announced a strategic amendment to its agreement with Fortress Asset Management regarding the Erongo Central Gold Project in Namibia. The original earn-in structure is being converted to an outright sale, offering enhanced upfront value. Under the new terms, Antler will receive US$800,000 in cash and CDN$4.11 million in shares of FortressCo for 80% of the project.
Fortress retains the right to acquire the remaining 20% equity interest for US$1.7 million within three years of FortressCo's public listing. Antler maintains a 2% net smelter return royalty and will continue as project operator for 24 months. The transaction requires shareholder approval with 50%+1 consent and regulatory approvals from TSX-V and Namibian authorities.
Antler Gold ha annunciato una modifica strategica al suo accordo con Fortress Asset Management riguardante il Erongo Central Gold Project in Namibia. La struttura originale di earn-in viene convertita in una vendita diretta, offrendo un valore iniziale migliorato. Sotto i nuovi termini, Antler riceverà 800.000 USD in contanti e 4,11 milioni di CDN$ in azioni di FortressCo per l'80% del progetto.
Fortress mantiene il diritto di acquisire il restante 20% di interesse azionario per 1,7 milioni di USD entro tre anni dalla quotazione pubblica di FortressCo. Antler mantiene una royalty del 2% sul ritorno netto dalla fusione e continuerà come operatore del progetto per 24 mesi. La transazione richiede l'approvazione degli azionisti con il consenso del 50%+1 e le approvazioni normative da parte del TSX-V e delle autorità namibiane.
Antler Gold ha anunciado una enmienda estratégica a su acuerdo con Fortress Asset Management respecto al Erongo Central Gold Project en Namibia. La estructura original de earn-in se está convirtiendo en una venta directa, ofreciendo un valor anticipado mejorado. Según los nuevos términos, Antler recibirá 800,000 USD en efectivo y 4.11 millones de CDN$ en acciones de FortressCo por el 80% del proyecto.
Fortress conserva el derecho de adquirir el 20% restante de la participación patrimonial por 1.7 millones de USD dentro de los tres años siguientes a la salida a bolsa de FortressCo. Antler mantiene un royalty del 2% sobre el retorno por fundición neto y continuará como operador del proyecto durante 24 meses. La transacción requiere la aprobación de los accionistas con consentimiento del 50%+1 y las aprobaciones regulatorias del TSX-V y de las autoridades namibias.
안틀러 골드는 나미비아 에론고 센트럴 골드 프로젝트에 대한 포트리스 자산 관리와의 계약을 전략적으로 수정했다고 발표했습니다. 원래의 임대 구조는 직접 판매로 전환되어 초기 가치를 향상시킵니다. 새로운 조건에 따라 안틀러는 프로젝트의 80%에 대해 800,000 USD의 현금과 4.11 백만 CDN$의 포트리스코 주식을 받게 됩니다.
포트리스는 포트리스코의 상장 후 3년 이내에 1.7 백만 USD에 나머지 20%의 지분을 인수할 권리를 유지합니다. 안틀러는 2%의 순광산 복귀 로열티를 유지하며, 24개월 동안 프로젝트 운영자로서 계속할 것입니다. 이번 거래는 주주 승인과 50%+1의 동의 및 TSX-V와 나미브 당국의 규제 승인이 필요합니다.
Antler Gold a annoncé un amendement stratégique à son accord avec Fortress Asset Management concernant le projet Erongo Central Gold en Namibie. La structure d'acquisition initiale est convertie en vente directe, offrant une valeur initiale améliorée. Selon les nouveaux termes, Antler recevra 800 000 USD en espèces et 4,11 millions de CDN $ en actions de FortressCo pour 80% du projet.
Fortress conserve le droit d'acquérir les 20% restants des droits de propriété pour 1,7 million USD dans les trois ans suivant l'inscription publique de FortressCo. Antler conserve une redevance de 2 % sur le retour net de fusion et continuera d'être l'opérateur du projet pendant 24 mois. La transaction nécessite l'approbation des actionnaires avec un consentement de 50 % + 1 et les approbations réglementaires des autorités de TSX-V et namibiennes.
Antler Gold hat eine strategische Änderung seines Vertrags mit Fortress Asset Management bezüglich des Erongo Central Goldprojekts in Namibia bekannt gegeben. Die ursprüngliche Earn-In-Struktur wird in einen direkten Verkauf umgewandelt, was einen erhöhten Vorabwert bietet. Unter den neuen Bedingungen erhält Antler 800.000 USD in bar und 4,11 Millionen CDN$ in Aktien von FortressCo für 80% des Projekts.
Fortress behält sich das Recht vor, die verbleibenden 20% des Eigenkapitals innerhalb von drei Jahren nach der öffentlichen Notierung von FortressCo für 1,7 Millionen USD zu erwerben. Antler behält eine 2%ige Net Smelter Return Royalty und wird 24 Monate lang als Projektbetreiber fungieren. Die Transaktion erfordert die Genehmigung der Aktionäre mit einer Zustimmung von 50%+1 sowie regulatorische Genehmigungen von TSX-V und den namibischen Behörden.
- Immediate cash payment of US$800,000 upon FortressCo public listing
- CDN$4.11 million in FortressCo shares as upfront payment
- Retention of 2% net smelter return royalty with no buyback provisions
- Potential additional US$1.7 million payment for remaining 20% stake
- Guaranteed 24-month operational role maintaining project control
- Loss of up to 100% project ownership
- Transaction dependent on FortressCo becoming publicly listed
- Reduction in future upside potential from original US$5.5 million earn-in agreement
Halifax, Nova Scotia--(Newsfile Corp. - December 5, 2024) - Antler Gold Inc. (TSXV: ANTL) ("Antler" or the "Company") is pleased to announce a strategic amendment to its previously announced agreement with Fortress Asset Management LLC ("Fortress") in respect of the Erongo Central Gold Project (the "Project") in Namibia. Under the terms of the original agreement dated September 18, 2024 (the "Original Agreement"), Antler granted to Fortress the right to acquire up to a
The amending agreement dated December 5, 2024 (the "Amending Agreement") transitions the transaction from the original earn-in structure to an outright sale (the "Amended Transaction"), delivering enhanced upfront value for Antler's shareholders, while eliminating the risk and uncertainty of future exploration expenditures.
Amended Transaction Highlights:
- Enhanced Payment Structure:
In exchange for
- US
$800,000 in cash within 10 business days of an entity controlled by Fortress becoming publicly listed ("FortressCo"). - Cdn
$4.11 million in FortressCo's shares prior to it becoming publicly listed. - Fortress has already paid US
$50,000 under the terms of the agreement.
- Remaining
20% Equity Interest:
Fortress retains the right to acquire the remaining
- Preservation of Royalty:
Antler retains a
- Continued Operational Role:
Antler will remain the operator of the Project for an initial 24-month period following the Transaction, ensuring operational continuity and effective project execution.
Strategic Benefits for Shareholders:
The Amending Agreement strengthens Antler's financial position by delivering a larger upfront cash and share consideration, reducing the uncertainty of phased payments. This enhanced structure provides Antler with the financial flexibility to pursue new strategic initiatives and exploration opportunities, driving long-term value for shareholders.
Shareholder and Regulatory Approval:
As required under TSX-V Policies, the Amended Transaction is subject to shareholder approval. Antler will seek written consent from shareholders representing at least
About Antler Gold Inc.
Antler Gold Inc. (TSXV: ANTL) is a Canadian listed mineral exploration company focused on the acquisition and exploration of mineral projects in Africa's Top-Ranked Jurisdictions, with exposure to both gold and Rare Earth Elements. The Company continues to assess new regional opportunities with the aim of building a risk diversified business model, which allows the company to generate short and long- term income whilst providing stakeholders with exposure to potential multiple returns that are generated from the discovery process.
Cautionary Statements
This press release may contain forward-looking information, such as statements regarding the completion of the transactions subject to the Original Agreement, as amended by the Amending Agreement and future plans and objectives of Antler and its subsidiaries, Antler Gold Namibia and others in relation to the Project. This information is based on current expectations and assumptions (including assumptions in connection with the continuance of the applicable company as a going concern and general economic and market conditions) that are subject to significant risks and uncertainties that are difficult to predict, including risks relating to the ability to satisfy the conditions to completion of the transactions contemplated by the Option Agreement. Actual results may differ materially from results suggested in any forward-looking information. Antler assumes no obligation to update forward-looking information in this release, or to update the reasons why actual results could differ from those reflected in the forward-looking information unless and until required by applicable securities laws. Additional information identifying risks and uncertainties is contained in filings made by Antler with Canadian securities regulators, copies of which are available at www.sedarplus.ca.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information, please contact Chris Drysdale, CEO of Antler Gold Inc. at +264 81 220 2439 or email at chris@antlergold.com.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/232690
FAQ
What is the new deal structure for Antler Gold's (ANTL) Erongo Gold Project?
How much can Fortress pay for the remaining 20% of Antler Gold's (ANTL) Erongo Project?
What royalty does Antler Gold (ANTL) retain in the Erongo Gold Project?
How long will Antler Gold (ANTL) remain the operator of the Erongo Project?
