Goldplay Signs $3.75M Letter of Agreement to JV Part of Its Portuguese Assets

Rhea-AI Summary

Goldplay Mining has signed a Letter of Agreement with Cullinan Metals Corp regarding the Borba 2 projects in Portugal. Cullinan aims to acquire a 100% interest in the properties by making cash payments totaling $750,000 and issuing shares worth $3 million, along with incurring $1.5 million in exploration expenditures over four years. Goldplay retains a 1% net smelter royalty from any production. This deal signals Goldplay's strategy to focus on key assets while advancing other projects with external partnerships.

Positive

• Goldplay signed an LOA with Cullinan Metals for Borba 2 projects, potentially enhancing asset value.
• Total cash payment from Cullinan amounts to $750,000 over a four-year period.
• Cullinan to issue shares valued at approximately $3 million, providing potential liquidity.
• Goldplay retains a 1% NSR from minerals produced, allowing for future revenue generation.

Negative

• None.

VANCOUVER, BC / ACCESSWIRE / June 13, 2022 / (TSXV:AUC)(OTCQB:AUCCF)(Frankfurt:9FY), (the "Company" or "Goldplay"), is pleased to announce that it has signed a Letter of Agreement (the "LOA") with Cullinan Metals Corp (CSE: CMT) ("Cullinan"), a copper focused public company, in regards to Goldplay's Borba 2 projects located in Portugal.

Terms of the Agreement

Cullinan can acquire 100% interest in the Borba 2 properties by making the following cash and share payments to Goldplay and incurring certain exploration expenditures over a 4 years period.

Date	Cash	Share Issuance in $ Equiv.	Aggregate of Work Expenditures
Upon signing the Definitive Agreement	$50,000
60 days after regulatory approval	$200,000	$250,000	NI 43-101 Report
One Year Anniversary	$75,000	$350,000	$0.2 Million
Two Year Anniversary	$100,000	$500,000	$0.3 Million
Three Year Anniversary	$150,000	$750,000	$0.5 Million
Four Year Anniversary	$175,000	$1,150,000	$0.5 Million
Total	$750,000	$3,000,000	$1.5 Million

Goldplay will retain a royalty interest of one percent (1%) net smelter returns ("NSR") from minerals mined and removed by Commercial Production from any mine located on the Property. One-half percent (0.5%) of the royalty interest can be purchased at any time for $500,000 CAD.

Catalin Kilofliski, President & CEO stated: "We are very excited to have the opportunity to partner with a group of very successful mining entrepreneurs and move forward some of our Portuguese projects in a way that generates significant value for our shareholders with no dilution, while maintaining the ability to participate in the project's upside, through Goldplay's future equity position in Cullinan. This transaction represents the first step in our strategy to focus our own resources only on certain key assets, while finding partners to advance some of our other projects. "

About Goldplay Mining

Goldplay Mining is a Canadian public company listed on TSXV and in US on OTCQB. Goldplay holds large district scale gold, and copper-gold projects located in BC's Golden Triangle and southwestern BC with potential for world class mineral discoveries. The Company also holds several brownfield gold, and copper-gold projects located in Portugal with near term mining potential.

On behalf of the Board of Directors

"Catalin Kilofliski"
President, CEO & Director

For further information please contact:

Goldplay Mining Inc.

Mr. Catalin Kilofliski, President & CEO
Suite 650 - 1021 West Hastings Street
Vancouver, BC V6E 0C3
T: (604) 655-1420
E: catalin@goldplaymining.ca
www.goldplaymining.ca

This news release contains "forward-looking information" within the meaning of applicable securities laws relating to the exploration potential of the Property. Generally forward-looking statements can be identified by the use of terminology such as "anticipate", "will", "expect", "may", "continue", "could", "estimate", "forecast", "plan", "potential" and similar expressions. These forward-looking statements involve risks and uncertainties relating to, among other things, results of future exploration and development activities, uninsured risks, regulatory changes, defects in title, availability of materials and equipment, timeliness of government approvals, changes in commodity prices and unanticipated environmental impacts on operations. Although the Company believes current conditions and expected future developments and other factors that have been considered are appropriate and that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct or enduring. Readers are cautioned to not place undue reliance on forward-looking information. The statements in this press release are made as of the date of this release. Except as required by law, the Company does not undertake any obligation to update publicly or to revise any forward-looking statements that are contained or incorporated in this press release. All forward-looking statements contained in this press release are expressly qualified by this cautionary statement. There is no certainty that the LOA will be followed by a definitive agreement and that the transaction will close as contemplated.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Goldplay Mining Inc.

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https://www.accesswire.com/704803/Goldplay-Signs-375M-Letter-of-Agreement-to-JV-Part-of-Its-Portuguese-Assets

FAQ

What is the agreement between Goldplay Mining and Cullinan Metals Corp?

Goldplay Mining signed a Letter of Agreement with Cullinan Metals Corp for the Borba 2 projects, allowing Cullinan to acquire a 100% interest through cash and share payments.

What are the financial terms of the Goldplay and Cullinan agreement?

Cullinan will pay Goldplay a total of $750,000 in cash and issue shares worth $3 million over four years, along with incurring $1.5 million in exploration expenditures.

How does Goldplay benefit from the Cullinan deal?

Goldplay retains a 1% net smelter royalty on minerals produced, allowing it to benefit from future mining activities.

When was the agreement between Goldplay Mining and Cullinan Metals Corp signed?

The Letter of Agreement was signed on June 13, 2022.