KO Gold Announces Sale of Exploration Permits and Repayment of Convertible Debenture Notes

Executive Summary

• KO Gold’s subsidiary sold three New Zealand exploration/prospecting permits for CDN $260,000, retaining a 2% NSR and granting the purchaser an option to repurchase 1% of the NSR for CDN $1,000,000.
• The company fully repaid its outstanding convertible debenture notes of $200,000 (principal) plus accrued interest, eliminating debt and potential equity dilution.
• Transaction focuses KO Gold on four priority drill‑ready permits and strengthens its balance sheet.

Key Details

• Permits Sold: Exploration Permit EP 60733, Exploration Permit EP 60677, Prospecting Permit PP 60705 (New Zealand).
• Purchase Price: CDN $260,000 total consideration.
• Net Smelter Royalty Retained: 2% NSR on future production from the sold permits.
• NSR Repurchase Option: Purchaser may repurchase 1% of the NSR for CDN $1,000,000 at any time after closing.
• Closing Conditions: Subject to customary conditions, including approval by the New Zealand Minister of Energy and Resources under the Crown Minerals Act (1991).
• Debt Repayment: Full repayment of convertible debenture notes – principal $200,000 plus all accrued interest.
• Impact on Balance Sheet: Elimination of outstanding debt; removal of potential equity dilution from note conversion.
• Strategic Focus: Enables KO Gold to concentrate resources on four priority drill‑ready permits within its Otago Gold District portfolio.

Notable Quotes

(No direct quotes were provided in the release.)