On November 2, 2017, GoGold Resources Inc. announced it had completed the sale of its Santa Gertrudis gold project in Sonora, Mexico to Agnico Eagle Mines Limited. GoGold received a total cash consideration of almost US$80 million from the transaction (less a working capital adjustment of about US$380,000) and was granted a 2% net smelter return on the project, 50% of which it may repurchase at any time for US$7.5 million. The Company has used the net proceeds of the Transaction to repay in full US$46.5 million outstanding under its existing senior revolving credit facility with the Bank of Montreal, to repay the principal and interest on a US$7.5 million subordinated secured term loan advanced by Agnico, and for working capital purposes.
GoGold Resources is a Canadian-based silver and gold producer focused on operating, developing, exploring and acquiring high-quality projects in Mexico.
Fasken advised on the transaction by a team that included John Turner, Krisztian Toth, Tom Meagher, Jessica Catton Rinaldi, Daniel Conrad and Matthew Downer.
