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Coral Gold (TSXV: CLH) sells their Robertson Property to a Barrick Gold subsidiary

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Barrick Cortez is purchasing Coral Gold’s Robertson Property, which is almost surrounded by Barrick. Properties included in the transaction are the Core, Gold Ridge, Excluded and the RUF mining claims, which cover approximately 8,480 acres, leaving Coral Gold with a portfolio of strategically-located claim blocks along the Cortez gold trend, including the properties known as the Norma, Saas, Eagle and JDN mining claims.

Additional Information:

Company: Coral Gold Resources
Website: http://www.coralgold.com
Stock Symbol: TSXV: CLH
Date Published: Jun 22, 2016
Transcript: Available

Video Transcript:

I’m Samantha Deutscher for Investmentpitch Media

Coral Gold Resources’shares nearly doubled in price on the sale of some of its Nevada properties to a Barrick Gold subsidiary.

Barrick Cortez is purchasing Coral Gold’s Robertson Property, which is almost surrounded by Barrick.
Properties included in the transaction are the Core, Gold Ridge, Excluded and the RUF mining claims, which cover approximately 8,480 acres, leaving Coral Gold with a portfolio of strategically-located claim blocks along the Cortez gold trend, including the properties known as the Norma, Saas, Eagle and JDN mining claims.

Highlights of the transaction include:
- A cash payment of US$15.75 million on closing
- The return of 4,150,000 shares of Coral held by Barrick, which will be cancelled
- A sliding scale of 1% to 2.25% net smelter returns royalty
- In the event the Robertson Property is not placed into production by December 31, 2023, Barrick will begin making advance royalty payments of US$500,000 annually

Barrick will also assume all liabilities relating to the Robertson Property, and will provide replacement security for the reclamation bond.

For complete details please refer to the June 21st news release.

David Wolfin, CEO, stated: “I am very pleased to announce this exciting transaction which creates immediate substantial value for Coral shareholders through the Cash Consideration and Share Reduction, in addition to the potential for long term value for shareholders through the NSR. Coral shareholders will have the opportunity to participate and benefit from expected future gold production at Robertson, additional resource growth at Robertson and will also have economic returns that will substantially improve if gold prices increase over Robertson’s mine life.”

Management stated that after adjusting for the share reduction, based on the company’s number of shares outstanding, the cash consideration alone is equal to approximately CDN$0.46 per share.

The shares closed at $0.34.

The company has scheduled a general meeting for July 22nd, to seek shareholder approval.

For more information, please visit the company’s website, www.coralgold.com, call 604-682-3701 or email ir@coralgold.com.

I’m Samantha Deutscher for Investmentpitch Media