A2GOLD TO SELL BOLO FOR $1.5 MILLION AND UP TO $2.8M IN CONTINGENT PAYMENTS
TONOPAH, Nev., Oct. 29, 2026 /CNW/ -- A2Gold Corp. ("A2Gold" or the "Company") (TSX-V: AUAU) (OTCQX: AUXXF) (FRA: RR7) is pleased to announce that it has entered into a definitive Mining Property Purchase and Sale Agreement (the "Definitive Agreement") with Super Gold Mining Corp. ("Super Gold") for the sale of a 100% interest in the Bolo Gold Project ("Bolo" or the "Project"), located in Nye County, Nevada. The Project comprises 187 unpatented lode mining claims together with the Uncle Sam patented mining claim.
The transaction is consistent with A2Gold's strategy of focusing its capital and technical resources on its core Eastside and Taylor projects while monetizing non-core assets in a manner that preserves meaningful exposure to future success.
Under the Definitive Agreement, upon Closing A2Gold will receive:
- C$1.5 million in Super Gold common shares, consisting of 3,750,000 shares at a deemed value of C$0.40 per share;
- Replacement by Super Gold of approximately US$198,500 in reclamation bonding, allowing A2Gold's existing reclamation funds to be released;
- Up to C$2.4 million in cumulative mineral resource milestone payments based on the size of future gold-equivalent mineral resources defined at Bolo; and
- An additional C$400,000 payment upon completion of a qualifying Preliminary Economic Assessment ("PEA").
A2Gold CEO Peter Gianulis commented: "The sale of Bolo monetizes a non-core asset, releases capital tied up in reclamation bonding and preserves exposure to its future success through an equity position in Super Gold and up to C$2.8 million in additional payments. The transaction positions Bolo for advancement by a group committed to funding the Project, while allowing A2Gold to focus on Eastside and Taylor, where we see the greatest opportunity to create shareholder value."
Transaction Terms
At Closing, Super Gold will issue A2Gold 3,750,000 common shares at a deemed price of C$0.40 per share, representing an aggregate deemed value of C$1.5 million. Super Gold has also agreed to replace the existing reclamation bonding, totaling approximately US$198,500, associated with Bolo and to reimburse claim maintenance fees paid for the current year.
The consideration shares will be subject to contractual resale restrictions, with 25% released upon completion of Super Gold's Going Public Transaction and additional 25% tranches released six, twelve and eighteen months thereafter, subject to applicable securities laws and exchange requirements.
Super Gold has agreed to use commercially reasonable efforts to complete a Going Public Transaction within twelve months following Closing and no later than eighteen months following Closing, subject to the extension provisions contained in the Definitive Agreement.
If Super Gold has not completed a Going Public Transaction within twelve months of Closing, A2Gold will be entitled to a C$200,000 cash payment.
If Super Gold has not completed a Going Public Transaction within eighteen months of Closing, A2Gold may, subject to the terms and cure provisions of the Definitive Agreement, elect to require the re-conveyance of Bolo.
Milestone Payments
Super Gold is required to engage an independent Qualified Person and complete the exploration and technical work reasonably required to support an initial NI 43-101 mineral resource estimate for Bolo within two years of Closing.
During the applicable milestone period, A2Gold will be entitled to cumulative payments based on gold-equivalent ounces identified in one or more future mineral resource estimates at Bolo:
- 200,000 – 399,999 AuEq ounces: C$500,000
- 400,000 – 599,999 AuEq ounces: C$800,000
- 600,000 – 799,999 AuEq ounces: C$1,100,000
- 800,000 – 999,999 AuEq ounces: C$1,500,000
- 1,000,000 AuEq ounces or greater: C$2,400,000
Furthermore, if a future PEA incorporates at least 200,000 gold-equivalent ounces and meets the economic thresholds established in the Definitive Agreement, A2Gold will be entitled to an additional C$400,000 PEA Payment.
Protection Upon a Future Sale of Bolo
The Definitive Agreement contains provisions protecting A2Gold's deferred consideration in the event Bolo is subsequently sold or otherwise monetized.
If, during the milestone period, Super Gold enters into a qualifying transaction involving Bolo with aggregate consideration attributable to the Project of C$25 million or more, the maximum C$2.4 million mineral resource milestone and C$400,000 PEA payment will be deemed earned, with A2Gold entitled to receive the unpaid balance of the aggregate C$2.8 million.
The Definitive Agreement also contains protections relating to certain sales or dispositions of Bolo during the initial two-year period following Closing.
Closing
Closing is expected to occur within the next few weeks, subject to satisfaction or waiver of certain conditions, including but not limited to the following:
- Establishment and acceptance of replacement reclamation bonding and confirmation of the release of A2Gold's existing reclamation bond;
- Approval of the transfer of the applicable Plan of Operations to Super Gold's U.S. subsidiary or its designated operator;
- Delivery of the agreed Cordex estoppel certificate; and
- Completion of customary title and closing documentation.
About A2Gold Corp
A2Gold Corp. has built a multi-asset gold-silver exploration platform in Nevada, one of the world's premier mining jurisdictions. The Company controls approximately 230 km² of prospective mineral tenure across its Eastside and Taylor projects, both district-scale assets with large precious metals resources with significant exploration and resource growth potential.
Eastside hosts an inferred mineral resource of 1.4 million ounces of gold and 8.8 million ounces of silver*, while Taylor adds a highly prospective exploration district with gold, silver, antimony and porphyry-skarn upside. Backed by a fully funded exploration program and a strong pipeline of catalysts, A2Gold is focused on unlocking value through resource expansion, new discoveries and systematic district-scale exploration.
A2Gold is also supported by a strong shareholder base, including Kinross Gold Corporation, which owns approximately 9.9% of the Company's issued and outstanding shares.
* Updated Resource Estimate and NI 43-101 Technical Report, Eastside and Castle Gold-Silver Project Technical Report, Esmeralda County, Nevada, prepared by Mine Development Associates of Reno, Nevada, with an effective date of July 30, 2021. Pit-constrained Inferred Resources, using a cut-off grade of 0.15 g/t Au, total 61,730,000 tonnes grading 0.55 g/t Au and 4.4 g/t Ag at the Original Pit Zone, representing 1,090,000 ounces of gold and 8,700,000 ounces of silver, and 19,986,000 tonnes grading 0.49 g/t Au at the Castle Area, representing 314,000 ounces of gold, using a gold price of US$1,725/ounce. Mineral resources are not mineral reserves and do not have demonstrated economic viability. Inferred mineral resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. |
On Behalf of the Board
Peter Gianulis, CEO
Certain statements and information contained in this press release constitute "forward-looking statements" within the meaning of applicable U.S. securities laws and "forward-looking information" within the meaning of applicable Canadian securities laws, which are referred to collectively as "forward-looking statements". The United States Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. A2Gold Corp.'s ("A2Gold") exploration plans for its gold exploration properties, the drill program at A2Gold's Eastside project, the preparation and publication of an updated resource estimate in respect of the Original Zone at the Eastside project, A2Gold's future exploration and development plans, including anticipated costs and timing thereof; A2Gold's plans for growth through exploration activities, acquisitions or otherwise; and expectations regarding future maintenance and capital expenditures, and working capital requirements. Forward-looking statements are statements and information regarding possible events, conditions or results of operations that are based upon assumptions about future economic conditions and courses of action. All statements and information other than statements of historical fact may be forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as "seek", "expect", "anticipate", "budget", "plan", "estimate", "continue", "forecast", "intend", "believe", "predict", "potential", "target", "may", "could", "would", "might", "will" and similar words or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook. Such forward-looking statements are based on a number of material factors and assumptions and involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements, or industry results, to differ materially from those anticipated in such forward-looking information. You are cautioned not to place undue reliance on forward-looking statements contained in this press release. Some of the known risks and other factors which could cause actual results to differ materially from those expressed in the forward-looking statements are described in the sections entitled "Risk Factors" in A2Gold's Listing Application, dated January 24, 2018, as filed with the TSX Venture Exchange and available on SEDAR under A2Gold's profile at www.sedar.com. Actual results and future events could differ materially from those anticipated in such statements. A2Gold undertakes no obligation to update or revise any forward-looking statements included in this press release if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.
SOURCE A2 Gold Corp
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