Aug 4 2014
Precipitate Gold Corp. is pleased to announce that, with respect to the agreement announced July 2, 2014, it has completed its due diligence review of the Richard and David concession applications and notified Gexplo S.R.L. and Santo Mining Corp. of its decision to proceed with the agreement to acquire a 100% interest in both the "Richard" and "David" concession applications in the Dominican Republic.
Upon execution of the agreement, Precipitate was granted a 30 day due diligence period during which it reviewed all available technical and legal data related to the concessions. Having completed a satisfactory review of the available information, Precipitate has notified the Vendor of its election to proceed with the terms of the agreement.
In accordance with the agreement, Precipitate has delivered to the Vendor a share purchase warrant allowing the Vendor to purchase up to 100,000 common shares of the Company at an exercise price of $0.30 per share for up to 3 months (expiring October 15, 2014), and granted the Vendor a 2% net smelter royalty ("NSR") on each of the concessions (purchasable by Precipitate for the price of US$500,000 per 0.5% for a total purchase price of US$2,000,000). Full details of the agreement can be found in the Company's news release dated July 2, 2014.