October 23, 2020 – Vancouver, Canada - Guyana Goldstrike Inc. (the “Company” or “Guyana Goldstrike”) (TSXV: GYA) would like to update shareholders on the status of the Marudi Gold Project (“Marudi” or the “Project”).
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” or the “Vendors”). Romanex controls the rights to the mining license which comprises 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.
As a result of the current pandemic surrounding the novel coronavirus (COVID-19) and the global financial crisis that ensued in March of this year, as well as delays associated with funding of the gold forward purchase agreement, the Company failed to meet its obligations surrounding the payment of consideration to acquire Romanex. The Company has now reached an agreement with the original shareholders of Romanex in which the Company has agreed to return its interest in Romanex to those shareholders in exchange for a release of all outstanding obligations of the Company related to the acquisition of Romanex. As a result, the Company no longer has an interest in the Project or Romanex, and any associated liabilities or obligations have been extinguished.
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 future prices of commodities, accuracy of mineral or resource exploration activity, reserves or resources, regulatory or government requirements or approvals, the reliability of third party information, continued access to mineral properties or infrastructure, fluctuations in the market for gold, changes in exploration costs and government regulation in Guyana, status of artisanal mining activities and associated rights, 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.