Gold mining company announced creation of BVI subsidiary

Marlin Gold Mining Ltd., an emerging gold and silver mining company having projects in Mexico, announced the creation of wholly-owned subsidiary named Sailfish Royalty Corp. and registered in the British Virgin Islands. The shares of the newly formed company will be distributed to Marlin’s shareholders, and Sailfish will become a separate publicly traded company.

The BVI company will be populated with a gold stream entitling it to purchase 25 per cent of gold from Marlin’s La Trinidad mine located in Sinaloa, Mexico, at US$1,150 per troy ounce for the next 40 years. Sailfish will distribute at least 90 per cent of its operating cash flow to investors, and its business objective will be to grow its dividend per share over time. It will be aimed to unlock shareholder value by establishing premium valuation on assets developed and acquired by the parent company.

Also, Marlin Gold signed a binding letter of intent to acquire a significant gold stream on Golden Reign Resources Ltd.’s San Albino gold deposit and surrounding areas in Nicaragua. For a purchase price of US$15 million, Sailfish will be entitled to purchase 40 per cent of gold production at US$700 per troy ounce until the first US$19.6 million is recovered by Sailfish, and 20% of gold production at $700 per troy ounce thereafter.

The capital required to complete this transaction will be raised through an equity offering, once Marlin has successfully completed its due diligence on Golden Reign.

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