KO Gold sells N.Z. exploration, prospecting permits

Executive Summary

• KO Gold’s subsidiary sold three New Zealand exploration/prospecting permits for $260,000, retaining a 2% NSR on future production.
• The company fully repaid its outstanding convertible debenture notes of $200,000 (plus accrued interest), eliminating debt and avoiding potential equity dilution.
• Proceeds and balance‑sheet improvement allow KO Gold to concentrate on four priority drill‑ready permits.

Key Details

• Permit Sale: Exploration permit 60733, exploration permit 60677, and prospecting permit 60705 sold for a total cash consideration of $260,000.
• Net Smelter Royalty (NSR): KO Gold N.Z. Ltd. retains a 2% NSR on any future production from the sold permits.
• Repurchase Right: Purchaser may repurchase 1 % of the NSR at any time after closing for $1 million.
• Closing Conditions: Transaction subject to customary conditions, including approval by the New Zealand Minister of Energy and Resources under the Crown Minerals Act (1991).
• Debt Repayment: KO Gold repaid its convertible debenture notes – principal $200,000 plus all accrued interest – fully extinguishing the debt.
• Balance‑Sheet Impact: Elimination of $200k debt improves liquidity and removes risk of equity dilution from note conversion.
• Strategic Focus: Post‑transaction, KO Gold will focus on its four “drill‑ready” permits within the Otago gold district.

Notable Quotes

(No direct quotes provided in the release.)