Tickers: XTSX:GYA, PINX:GYNAF, FRAA:1ZT
Vancouver, Canada - TheNewswire - March 25, 2020 - Guyana Goldstrike Inc. (the "Company" or "Guyana Goldstrike") (TSXV:GYA) (OTC:GYNAF) (FSE:1ZT). Effective November 1, 2016, the Company entered into share purchase agreement (the "Purchase Agreement") pursuant to which it agreed to acquire all of the outstanding share capital of Romanex Guyana Exploration Ltd. ("Romanex"). Romanex controls the rights to the mining license which comprises the Marudi Gold Project (the "Project") located in Guyana, South America.
In consideration for the acquisition of Romanex, the Company agreed to complete a series of cash payments and share issuances to the principals of Romanex. While the transaction contemplated by the Purchase Agreement was consummated on March 3, 2017, the Company remained obligated to complete cash payments to the principals of Romanex, as well as retire existing payables of Romanex, and maintain the Project in good standing.
Since consummation of the transaction, the Company has worked with the principals of Romanex to extend the deadlines for the completion of cash payments in order to meet the working capital needs of the Company. While discussions were ongoing until recently, the Company has now been advised by the principals of Romanex that they are unwilling to entertain further extensions. The Company views the current pandemic surrounding the novel coronavirus (COVID-19) and the resulting global financial crisis as an event of force majeure, which the Company invoked on March 18, 2020, necessitating an extension of the Company's obligations surrounding the payment of consideration to acquire Romanex. The principals of Romanex have advised that they disagree with this assessment, and it is their position that the Purchase Agreement has been terminated. The principals have delivered a notice of termination of the Purchase Agreement, dated March 21, 2020, to this effect.
While the Company is continuing to assess options for enforcing its rights in respect of Romanex and the Purchase Agreement, and recouping investments made to date in advancing the Project, at this time the Company is unable to control the affairs of Romanex and the conduct of activities at the Project.
The Company will provide a further update regarding the status of the Purchase Agreement, and its relationship with Romanex, once it has had an opportunity to assess available options and as the situation develops.
On behalf of the Board of Directors of
GUYANA GOLDSTRIKE INC.
President and Chief Executive Officer
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.
This news release may contain certain "Forward-Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target, "plan", "forecast", "may", "schedule" and other similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to the Company's ongoing relationship with Romanex, the status of the Purchase Agreement, rights the Company may have in respect of the Project, and other factors or information. Such statements represent the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affections such statements and information other than as required by applicable laws, rules and regulations.
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