Chesapeake Gold Corp.

Published : August 08th, 2014

Chesapeake Assigns Metates Royalty to Silver Wheaton

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Keywords :   Gold | Precious Metals | Silver |

Chesapeake Assigns Metates Royalty to Silver Wheaton

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug 8, 2014) - Chesapeake Gold Corp. ("Chesapeake") (TSX VENTURE:CKG) is pleased to announce that it has entered into an agreement (the "Agreement") whereby Chesapeake has assigned its interest in the 1.5% net smelter returns royalty (the "Royalty") on its Mexican Metates gold-silver property to Wheaton Precious Metals (Cayman) Co. ("Wheaton"), a subsidiary of Silver Wheaton Corp., in consideration for US$9.0 million. The Royalty had previously been acquired by Chesapeake for US$9.0 million from SANLUIS Corporation, a private Mexican company (see news release dated May 9, 2014).

As part of the Agreement, Chesapeake will have the right at any time for a period of five years to repurchase two-thirds of the Royalty (that being a 1% net smelter returns royalty) from Wheaton for US$9.0 million with Wheaton continuing to hold a 0.5% Royalty interest. Also as part of the transaction, Chesapeake through its wholly-owned Mexican subsidiary, American Gold Metates, S. de R.C. de C.V. ("AGM") will hold a right of first refusal to purchase the Royalty in the event Wheaton elects to sell the Royalty to a third party, on the same terms and conditions as the third party offer. The Agreement also contains customary terms and conditions for a royalty transaction.

Chesapeake and AGM have also entered into a right of first refusal agreement with Wheaton whereby Chesapeake and AGM have granted Wheaton a right of first refusal on any future silver stream or royalty for which Chesapeake or AGM receives and accepts an offer to purchase, on the same terms and conditions as the third party offer.

P. Randy Reifel, President, commented, "The royalty financing with Wheaton further strengthens our cash position without dilution to our shareholders. The arrangement also provides Chesapeake with leverage and optionality in Metates future development as the project is advanced to the full feasibility stage and beyond."

Currently, Chesapeake is focused on completing an updated pre-feasibility study ("PFS") based on an initial 30,000 tpd ore throughput rate with one or more staged expansions to increase the rate up to 90,000 tpd and/or 120,000 tpd. Evaluations are well advanced to develop a mine plan that would incur a significantly lower initial capital cost and continue to realize the full economic benefit of mining the world class gold-silver reserve at Metates.

Recent investigations have identified several alternate process plant sites near existing infrastructure and limestone resources closer to the Metates mine site. Once the optimum site has been determined, geotechnical investigations, site layout and civil engineering related work will be undertaken in support of the PFS.

After the receipt of US$9.0 million from Wheaton, Chesapeake will have a treasury position of $33 million in cash and marketable securities.

For more information on Chesapeake and its Metates Project, please visit our website at www.chesapeakegold.com.

CHESAPEAKE GOLD CORP

P. Randy Reifel, President

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Read the rest of the article at finance.yahoo.com

Chesapeake Gold Corp.

EXPLORATION STAGE
CODE : CKG.V
ISIN : CA1651841027
CUSIP : 1665184
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Chesapeake Gold is a gold development stage company based in Canada.

Chesapeake Gold develops gold, silver and zinc in Mexico, and holds various exploration projects in Argentina, in Canada and in Mexico.

Its main asset in development is METATES in Mexico and its main exploration properties are BUZ / MUD SPRINGS, LA CALAVERA PROJECT and CUCARACHA DORADO in Mexico and BIG KIDD and BRASSIE CREEK in Canada.

Chesapeake Gold is listed in Canada and in United States of America. Its market capitalisation is CA$ 79.8 millions as of today (US$ 58.6 millions, € 53.1 millions).

Its stock quote reached its highest recent level on February 01, 2013 at CA$ 9.99, and its lowest recent point on June 16, 2023 at CA$ 1.06.

Chesapeake Gold has 44 560 000 shares outstanding.

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Project news of Chesapeake Gold Corp.
9/12/2013(Metates)Provides Update on Technical Developments at Metates and Reg...
3/28/2013(Metates)Announces Filing of Preliminary Feasibility Study for the Me...
2/1/2013(Metates)Announces Positive Pre-Feasibility Study for Metates Project
4/28/2011(Metates)Developing its World Class Metates Gold and Silver Project i...
3/7/2011(Metates)METATES UPDATED PEA INDICATES EXCELLENT PROJECT ECONOMICS
Corporate news of Chesapeake Gold Corp.
3/21/2016Chesapeake Announces Grant of Stock Options
12/17/2015Metates Updated Pre-Feasibility Study to Be Released in Earl...
12/16/2015Chesapeake Gold Corp.: Metates Updated Pre-Feasibility Study...
4/8/2015Commences Trading in the United States on OTCQX
4/8/2015OTC Markets Group Welcomes Chesapeake Gold to OTCQX
3/31/2015Chesapeake Announces New Water Source Strategy For Metates -...
3/31/2015(Metates)Announces New Water Source Strategy For Metates; Updated Pre...
3/31/2015Chesapeake Announces New Water Source Strategy For Metates; ...
8/29/2014Chesapeake Announces Grant of Stock Options
8/8/2014IIROC Trading Resumption - CKG
8/8/2014IIROC Trading Halt - CKG
8/8/2014Chesapeake Assigns Metates Royalty to Silver Wheaton
5/9/2014Chesapeake Acquires Metates Royalty
12/20/2013December 20, 2013
9/12/2013September 12, 2013
3/28/2013(Metates)Metates Gold-Silver Project NI 43-101 Technical Report Preli...
3/28/2013March 28, 2013
2/1/2013January 31, 2013
9/21/2012September 21, 2012
9/21/2012(Metates)Metates Pre-Feasibility Study Near Completion-Q4 Release
6/20/2012June 20, 2012
5/25/2012May 25, 2012
3/6/2012March 6, 2012
2/28/2012February 28, 2012
2/6/2012February 6, 2012
12/15/2011December 15, 2011
12/15/2011Canaccord - Chesapeake Report
9/21/2011Mackie Research Capital Morning Comment (CKG)
9/20/2011September 20, 2011
6/6/2011Byron Captial - Chesapeake Gold Report
5/5/2011May 4, 2011
4/26/2011(Metates)Metates Gold-Silver Project - Updated Preliminary Economic A...
6/25/2010News Release June 24, 2010
5/12/2010News Release May 12, 2010
5/6/2010News Release May 5, 2010
4/22/2010News Release April 21, 2010
3/5/2010News Release March 4, 2010
2/12/2009News Release Feb. 12, 2009
4/18/2008STRENGTHENS MANAGEMENT TEAM AND UPDATES METATES EXPLORATION ...
3/14/2008Issues Corporate Update
2/13/2008 Announces Conversion of Series 1 Class A Shares
8/30/2007Outlines development work at Metates
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