Toronto, Ontario–(Newsfile Corp. – March 21, 2018) – Argo Gold Inc. (CSE: ARQ) (“Argo Gold” or the “Company”) has entered into an agreement with Manitou Gold Inc. (“Manitou”) pursuant to which Argo Gold has agreed to sell its 100% interest in 16 unpatented mining claims comprising its Rockstar Gold Property (the “Rockstar Property”) located in the Sault Ste. Marie Mining Division to Manitou. Pursuant to the terms of the agreement the Company has agreed to sell the Rockstar Property, in exchange for:
CDN$200,000 payable to the Company on the closing date;
4 million shares of Manitou Gold Inc. to be issued to Argo Gold on the closing date;
A 1% net smelter return royalty (the “Royalty”) in favour of Argo Gold on the Rockstar Property. Manitou can purchase 0.5% of the Royalty (so that the remaining Royalty is equal to 0.5%) from Argo Gold for the sum of CDN$500,000.
Completion of the transaction will be subject to receipt of all necessary consents and regulatory approvals.