In advance of any transfer of rights or delivery of payment, the agreement grants Precipitate a 30 day due diligence period during which the Company will seek consent of the transfer from the Ministry of Industry and Commerce of the Dominican Republic and review all technical and legal data related to the concessions. Any warrant shares purchased by the Vendor will be subject to a four month hold period. Should the Vendor exercise any of the Warrants and thereafter seek to sell some or all of the shares, it must notify Precipitate and allow Precipitate at least 10 calendar days to arrange buyers of the shares. 100,000 share purchase warrants ("Warrants") 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 from the date of grant.The NSR can be purchased by Precipitate for the price of US$500,000 per 0.5% for a total purchase price of US$2,000,000 and a 2% net smelter royalty ("NSR") on each of the concessions.Precipitate can acquired a 100% interest in the Richard and David concession applications, and will assume all application obligations, in a non-cash transaction whereby Precipitate will grant the Vendor: The Company's total Dominican land package now covers about 14,829 hectares, in both application and fully granted stages. Precipitate is reviewing this newly acquired technical data which will provide guidance to the next exploration phase on these new concessions. The Vendor conducted preliminary stage exploration work on both concessions, including rock, silt and soil sampling. The addition of the David concession application gives the Company contiguous exposure to the Tireo along the southern boundary of the neighbouring Goldquest concessions including areas in close proximity to Precipitate's Melchor and Goldquest's Jengibre discoveries. David is dominantly underlain by regionally favourable Cretaceous age Tireo formation rocks which are part of the same regional stratigraphy that hosts GoldQuest Mining's Romero discoveries and Precipitate's Ginger Ridge and Melchor zones. The David concession is situated in the emerging Tireo Gold-Silver-Copper exploration camp adjacent to the Company's existing Juan de Herrera concession where Precipitate has been exploring in recent months. The Company's newly acquired Richard concession is underlain by the same Cretaceous age Los Ranchos formation rocks that host the Pueblo Viejo deposit. The Pueblo Viejo high sulphidation epithermal gold and silver deposit hosts an estimated 22.0 million ounces of gold and 117.0 million ounces of silver and is expected to produce up to 1.0 million ounces gold this year. and Goldcorp's Pueblo Viejo Gold-Silver mining camp. The Richard concession is located 4 kilometres to the southeast of Barrick Gold Corp. With the Vendor shifting its focus to other property interested in Mexico and Africa, we are pleased with the non-cash acquisition terms for these concessions and thank the Vendor for its cooperation in this process."
The David concession provides the Company with a significant increase of the preferred and prospective Tireo formation target rocks, while the Richard concession gives Precipitate a strategic new land position in a world-class modern gold mining camp. Both the David and Richard concessions have compelling technical and strategic importance. See attached figures ( ) for respective concession locations or visit the Company's website at Jeffrey Wilson, Company President & CEO stated, "We are pleased to acquire these two concession applications. The Richard concession is located about four kilometres southeast of Barrick and Goldcorp's Pueblo Viejo Gold Mine site. The David concession is located on the north central border of Precipitate's Juan de Herrera concession within the Tireo Gold Camp and greatly increases Precipitate's prospective Tireo landholdings. The two concession applications, named " Richard" and " David", cover an area of 220 and 1,400 hectares respectively. (together the "Vendor") whereby Precipitate will acquire a 100% interest in two concession applications in the Dominican Republic in exchange for a 2% net smelter royalty and the granting of 100,000 Precipitate share purchase warrants exercisable for up to three months at an exercise price of $0.30 per share. (the "Company" or "Precipitate") (TSX VENTURE:PRG) is pleased to announce it has reached an agreement with Gexplo S.R.L. VANCOUVER, BRITISH COLUMBIA-(Marketwired - Jul 2, 2014) - Precipitate Gold Corp.
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