Toronto, Ontario--(Newsfile Corp. - October 3, 2025) - KO Gold Inc. (CSE: KOG) ("KO Gold" or the "Company") announces that its wholly owned subsidiary KO Gold NZ Limited (the "Subsidiary") entered into a definitive agreement with an arm's length party (the "Purchaser") dated September 22, 2025, for the sale of certain New Zealand exploration and prospecting permits, namely Exploration Permit EP 60733, Exploration Permit EP 60677, and Prospecting Permit PP 60705 (together, the "Permits").
Under the terms of the agreement, the Purchaser acquired the Subsidiary's interest in the Permits for total consideration of CDN $260,000. As part of the transaction, the Subsidiary will retain a 2% Net Smelter Royalty ("NSR") on future production from the Permits. The Purchaser will have the right, at any time following closing, to repurchase 1% of the NSR for CDN $1,000,000.
The transaction remains subject to customary closing conditions, including approval of the New Zealand Minister of Energy and Resources pursuant to the Crown Minerals Act (1991).
The Company also announces that it has fully repaid its outstanding convertible debentures notes in the principal amount of $200,000 (the "Notes"), together with all accrued interest. The repayment of the Notes strengthens the Company's balance sheet by eliminating outstanding debt and potential equity dilution from note conversion.
This transaction will allow KO Gold to focus on its four, priority drill ready permits.
About KO Gold Inc.
KO Gold is a Canadian junior exploration company listed on the CSE under "KOG". The Company's strategy is to acquire and explore highly prospective gold properties within the Otago Gold District in New Zealand. KO Gold has eight 100%-owned prospecting and exploration permits within the Otago Gold District for a combined land package of 399.9 km2. The Company's Smylers and Glenpark EPs are located adjacent to OceanaGold's Macraes Gold Mine and the Carrick EP hosts the historic Carrick Goldfield which holds promise as a significant gold deposit near Santana Minerals' Bendigo-Ophir Gold Project. KO Gold has spent over C$3M in exploration and drilling on its permits in the Otago Gold District over the past five years including RC and diamond drilling on its Smylers EP.
For further information, please contact:
| Greg Isenor, President and CEO, Director Tel: (902) 832-5555 Email: info@kogoldnz.com Website: www.kogoldnz.com | KO Gold Inc. Suite 802 - Sun Tower, 1550 Bedford Highway Bedford, Nova Scotia B4A 1E6 Canada |
The CSE has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this news release.
Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable securities legislation, including statements with respect to the completion of the sale of the Permits, the receipt of regulatory approvals, the anticipated benefits of the transaction, and the Company's future financial position and business strategy following repayment of the convertible notes. Forward-looking information is based on the reasonable assumptions, estimates, expectations, analyses and opinions of management made in light of its experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances.
Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual events, results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. These risks, uncertainties and factors include, among others: the risk that the sale of the Permits may not close on the terms or timeline currently contemplated, or at all; the risk that required regulatory approvals will not be obtained or will be obtained subject to conditions; risks related to exploration and mining generally, including operational risks in carrying out exploration and development activities; volatility of commodity prices; political and regulatory risks; risks related to the Company's ability to maintain stock exchange listings; risks related to future financing requirements; and those risk factors discussed in the Company's continuous disclosure documents available under the Company's profile at www.sedarplus.ca.
Readers are cautioned not to place undue reliance on forward-looking information. The forward-looking information contained in this news release is made as of the date hereof and is expressly qualified in its entirety by this cautionary statement. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/269107
SOURCE: KO Gold Inc.
