On September 1, 2020, Scorpio Gold Corporation (“Scorpio Gold”) announced that it had granted an option (the “Option”) to Titan Mining Corporation (“Titan”) to earn an 80% interest in the Mineral Ridge property located in Nevada owned by an indirect subsidiary of Scorpio Gold, Mineral Ridge Gold LLC, pursuant to the terms of an option agreement dated August 29, 2020 (the “Option Agreement”). Under the terms of the Option Agreement, Titan must spend an aggregate amount of US$35,000,000 in exploration expenditures over a five-year period in order to exercise the Option. Titan also has the right to acquire 100% of the Mineral Ridge property by paying US$35,000,000 by December 31, 2022.
In connection with the Option Agreement, Scorpio Gold completed a non-brokered private placement (the “Private Placement”) of 37,500,000 units at a purchase price of C$0.16 per unit for gross proceeds of C$6,000,000 that closed in two tranches on September 14 and October 14, 2020. Each unit was comprised of one common share in the capital of Scorpio Gold and one common share purchase warrant, with each warrant being exercisable to purchase one additional common share at an exercise price of C$0.24 for a three-year period.
Scorpio Gold obtained disinterested shareholder approval to the Option Agreement and the creation of a control person as a result of the Private Placement at a shareholder meeting held on October 2, 2020.
Scorpio Gold is a Canadian-based gold producer with a 100% interest in the advanced exploration-stage Goldwedge property in Manhattan, Nevada and, subject to closing, a 100% interest in the Manhattan property situated adjacent to the Goldwedge property.
Further details regarding Scorpio Gold, the Option and the Private Placement can be found on Scorpio Gold’s website. Scorpio Gold trades under the symbol “SGN” on Tier 2 of the TSX Venture Exchange.