June 3rd, 2020 Altamira Gold Corp.’s (TSXV: ALTA) (FSE: T6UP) (USA: EQTRF), (“Altamira” or the “Company”) is pleased to announce that it has repurchased a 1.75% net smelter return royalty (“NSR”) from ECI Exploration and Mining Inc. (“ECI”) on the two claims covering its Crepori gold project in the state of Para, as well as ECI´s interest in the Apiacas gold project in state of Mato Grosso, Brazil, an area covered by four mining claims.
Michael Bennett. President and CEO stated “Buying back the ECI royalties on the Crepori and Apiacas areas, eliminates a dilutive overhang on these projects and provides a more flexible optionality to create value for our shareholders in both of these project areas, while we continue to focus on advancing our Cajueiro project into production”.
In consideration for the repurchase of the NSR, Altamira will issue and deliver 2,000,000 common shares of Altamira (“common shares”) to ECI or its nominee; and issue 4,000,000 common share purchase warrants (“warrants”) to ECI, with each warrant entitling ECI to purchase one common share of Altamira at a price of CAD$0.25 per share at its sole discretion for a period of 36 months from the date of issuance of the warrants.
The transaction and the issuance of the shares and warrants contemplated by the NSR Royalty Purchase Agreement are subject to the acceptance of the TSX Venture Exchange. Any securities issued will be subject to applicable statutory hold periods for a period of four months from the date of issuance.
Crepori Gold Project
The Crepori project is situated in the Tapajos Gold Province approximately 100km SW of the Serabi gold mine complex. An estimated 0.5Moz of placer gold was recovered from drainages in the area and small-scale historical hard-rock mining was conducted along two gold bearing quartz veins. Historic production in the Creporizinho region between 1983 and 1990 has been estimated by others at 400 kg Au per month.
Apiacas Gold Project
The Apiacas project comprises a total of 80,000 ha and is located 50km west of Cajueiro project in the Alta Floresta Belt. The Apiacas district historically produced over 1Moz of placer gold and was the largest placer gold camp in the Alta Floresta belt. Altamira has identified numerous targets within the district, the most significant of which is the Mutum target which produced the bulk of the historic placer gold production. Disseminated gold mineralization has been identified in highly altered intrusive rocks over 4 square kilometres suggesting the potential for a large disseminated gold deposit.
Guillermo Hughes, P. Geo., a consultant to the Company as well as a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.
Neither the TSX Venture Exchange nor it’s 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.
About Altamira Gold Corp.
The Company is focused on the exploration and development of gold projects within western central Brazil. The Company holds 9 projects comprising approximately 290,000 hectares, within the prolific Juruena gold belt which historically produced an estimated 7 to 10Moz of placer gold. The Company’s advanced Cajueiro project has NI 43-101 resources of 5.66Mt @ 1.02 g/t gold for a total of 185,000 oz in the Indicated Resource category and 12.66Mt @ 1.26 g/t gold for a total of 515,000oz in the Inferred Resource category.
On Behalf of the Board of Directors,
ALTAMIRA GOLD CORP.
President & CEO
Statements in this document which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. It is important to note that actual outcomes and the Company’s actual results could differ materially from those in such forward-looking statements. Except as required by law, we do not undertake to update these forward-looking statements.