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Superior Gold Provides Notice to Acquire Plutonic Royalty

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Superior Gold Provides Notice to Acquire Plutonic Royalty

 

 

 

 

 

Superior Gold Inc.  (TSX-V: SGI) is pleased to announce that it has provided the required notice under its asset purchase agreement with  Northern Star Resources Limited to repurchase the 2% net smelter return royalty on future gold recovered from the Plutonic Gold Operations for $4.6 million (AUD$6.5 million).  The Northern Star Royalty has a value of $7.1 million (AUD$10 million)1 and its repurchase is expected to improve the Company’s projected cash flow by at least $2 million2 over the next twelve months.

 

Tamara Brown, Interim CEO of Superior Gold stated: “We are very pleased to be repurchasing the Northern Star Royalty, an immediately accretive transaction that significantly improves the projected cash flow from Plutonic over the next few years.  We see the removal of this royalty as an important value enhancement for Superior Gold shareholders as a 2% royalty of this nature is customarily valued at a range of 10-20 times cash flow.” 

 

About Superior Gold

 

Superior Gold is a Canadian based gold producer that owns 100% of the Plutonic Gold operations located in Western Australia. The Plutonic Gold operations include the Plutonic underground gold mine and central mill, the Hermes open pit projects and an interest in the Bryah Basin joint venture. Superior Gold is focused on expanding production at the Plutonic Gold operations and building an intermediate gold producer with superior returns for shareholders.

 

Posted December 1, 2020

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