Golden Tag Obtains One Year Extension to Its 60% Earn-in San Diego Property, Mexico
MONTREAL, QUEBEC--(Marketwired - July 30, 2013) - Golden Tag Resources Ltd. (the "Company") (TSX VENTURE:GOG) announces the signing of a second amendment to its Joint Venture Agreement ("JVA") with Golden Minerals Company's subsidiary ECU Silver. The JVA governs the parties' San Diego multi-million ounce silver exploration project in Mexico. Under the first JVA amendment, Golden Tag acquired the right to increase its interest in the JV from 50% to 60% by solely funding the next US $3 million of additional exploration expenses by March 24, 2014. To date, the Company has expended approximately US $2 million of the exploration work requirement.
Under the second JVA amendment, Golden Tag has obtained a 12 month extension to March 24, 2015 to spend the final $1 million. The consideration for the extension is Golden Tag's agreement to carry Golden Minerals first $250,000 in JV exploration funding obligations after Golden Tag achieves its 60% interest. Golden Tag is then obligated to promptly propose and vote to adopt a program and budget calling for exploration costs of at least $625,000 to be spent on a drilling program focused on near surface higher grade veins to be mutually agreed with ECU Silver. Golden Tag shall then carry out the program and fund ECU Silver's 40% ($250,000) share. The higher grade drilling program is to be completed prior to any other exploration or development program being conducted by the San Diego Joint Venture.
The extension will give the Company more flexibility in terms of time to raise the required funds to complete the earn-in, and thereby potentially decrease the dilutive effect in the Company's share structure in these presently poor market conditions in the junior resource sector.
The Company's news releases of February 26, 2013 and March 4, 2013 provide a summary of the updated NI 43-101 Mineral Resource estimate on the San Diego property. The actual updated report can be viewed at the Company's website at www.goldentag.ca.
Golden Tag Resources
Golden Tag is focused on exploration for high-grade gold and silver deposits in Canada and Mexico. Exploration projects are being advanced on the San Diego silver project in Durango State, Mexico and the Aquilon gold project in James Bay, Quebec. Golden Tag also has interests in the McCuaig gold project in Red Lake, Ontario. Golden Tag has 53,426,558 issued and outstanding shares and has no outstanding debt.
Cautionary Statement: Statements in the release that are "forward looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially. For a discussion of the risk factors that are inherent in the Mining Industry see our public filings at www.sedar.com.
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