Tickers: XTSX:GYA, PINX:GYNAF, FRAA:1ZT
April 14, 2020 - TheNewswire - Vancouver, Canada - Guyana Goldstrike Inc. (the "Company") (TSXV:GYA), (OTC:GYNAF), (FSE:1ZT) announces that it has agreed to extend the deadline for the completion of an initial payment owing to the Company in connection with a gold forward purchase agreement (the "Forward Agreement") previously entered into by the Company, effective January 24, 2020.
Under the terms of the Forward Agreement, the Company had agreed to deliver 30,000 ounces of gold, in consideration for an investment of US$9,000,000 to be utilized in the development of the Marudi Gold Project (the "Project") located in Guyana, South America. The investment was to be made in two parts by an arms-length investor (the "Investor") The initial payment of US$2,000,000 was due and owing by April 14, 2020, with the balance owing within thirty days of the registration of a royalty interest in the Project in favour of the Investor.
Due to the current global pandemic surrounding the novel coronavirus (Covid-19) and the resulting financial crisis, the Investor has invoked force majeure on the Forward Agreement and an extension to the payment deadline has been request. The Company has accepted this request and an extension has now been granted. Under the terms of the extension, the Company has agreed to extend the deadline for completion of the initial payment through until July 14, 2020. All other terms of the Forward Agreement remain in effect.
The Investor's desire and intent is to complete the payments and the Investor is confident that the extension will provide sufficient time to allow the global pandemic to subside. Further, the Company is confident the dispute surrounding control of the Project, and Romanex Guyana Exploration Ltd.("Romanex") can also be resolved during this period. The consummation of the transaction under the Forward Agreement, and the receipt of any investment, is contingent on the Company retaining control of the Project, and Romanex.
For further information regarding the Forward Agreement, and the dispute surrounding control of the Project, and Romanex, readers are encouraged to review the news releases issued by the Company on January 27, 2020 and March 25, 2020.
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 Forward 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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