Vancouver, April 27, 2020 – Scorpio Gold Corporation (“Scorpio Gold” or the “Company”) (TSX-V: SGN) the Company elected to settle its semi-annual interest payment on its US$7,175,000 secured subordinated convertible debentures by the issue of common shares at $0.08 per share as announced on April 20, 2020. Having now received the approval of the TSX Venture Exchange the Company has issued a total of 6,368,600 common shares to settle its semi-annual interest payment of US$361,699.
Murray Bockhold, CEO of BIM Group comments “We see this as a win-win for Scorpio and the decision has the full support of G.R. Dawson Holdings Ltd and BIM Group, who hold 93% of the debentures. These are unprecedented times and Scorpio is taking prudent steps to mitigate any, and all risks. Permitting is in place and construction of the floatation cell for the LodeStar toll agreement is on budget and on time. Drilling is continuing at Goldwedge and the value of our assets in the ground have increased dramatically in the past year. Scorpio Gold’s Enterprise Value is only C$15.6 million while at US$1,500 our NPV@5% in Canadian dollar terms is $108.8 million. Obviously, this value gap is even higher with gold at $1,700. Scorpio Gold remains committed to surfacing the value on behalf of shareholders.”
Ian Dawson goes on to say: “It is prudent for Scorpio to preserve its cash during this period of uncertainty so the company will be in a stronger position to build its enterprise value.”
ON BEHALF OF THE BOARD
SCORPIO GOLD CORPORATION
Chief Executive Officer
For further information contact:
Brian Lock, CEO
Tel: (604) 889-2543
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.