Continental Gold Closes Stream Transaction with Triple Flag Mining Finance

Continental Gold Inc. (TSX:CNL; OTCQX:CGOOF) has announced the closing of the previously-announced US$100 million gold and silver stream transaction with Triple Flag Mining Finance Bermuda Ltd. Proceeds from the stream will be used for general and working capital purposes and toward construction, commissioning and start-up of the company’s Buriticá Project located in Antioquia, Colombia.

Triple Flag Mining Finance Bermuda Ltd. primarily targets precious metal streaming and royalty investments in the mining sector, with backing by Elliott Management Corporation, an experienced global investment firm with more than US$35 billion of assets under management.

Key terms of the stream agreement include:

• Funding of the stream was in one lump sum payment on closing.
• US$100 million subordinated secured 2.1% gold and 100% silver stream on the Buriticá Project, where payable silver is deemed to be 1.84 ounces of payable silver for each ounce of payable gold.
• Ongoing payments of 10% and 5% of the spot price of gold and silver, respectively.
• Full buyback option, on or before December 31, 2021, of the entire gold stream for US$80 million, less any gold stream net cash flows received as at the time of buyback.

Continental Gold is the largest large-scale underground gold mining company in Colombia and is presently developing it’s 100% owned Buriticá practices for mine construction, environmental care and community inclusion. Led by an international management team with a verifiable record of discovering, financing and developing large high-grade gold deposits in Latin America, the Buriticá project is on schedule with first gold pour anticipated during the first half of 2020.