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Reno, Nevada – (Newsfile Corp. – October 26, 2021) – Nevada Canyon Gold Corp. (OTC Pink: NGLD) (the “Company” or “Nevada Canyon”) is pleased to announce that it has signed a non-binding letter of intent (the “Letter of Intent“) with Target Minerals, Inc (Target) a private company in Nevada, to enter into a purchase option agreement (the “Agreement“) to acquire 100% of Target’s 1% production royalty interest on the Olinghouse project, located in the Olinghouse mining district, Washoe County, Nevada.
The Olinghouse Project is located approximately 30 miles east of Reno, Nevada. The property was operated by Alta Gold in the late 1990s and was the subject of a feasibility study in 1997. The mine entered production in 1999, however, due to historically low gold prices. combined with substantial indebtedness, Alta Gold went bankrupt shortly thereafter, at the end of 2000. The historic geological resources described in the 1997 Alta Gold feasibility study were based on more than 600 holes. drill rigs at 100 ft from center. The historic geological resource contained 695,128 ounces of gold at an average grade of 0.0381 oz / tonne gold at a cut-off of 0.01 oz / tonne. The property has not been the subject of any modern exploration since the Alta Gold bankruptcy in 2000. The historic mineralized resource is open at depth and along strike, with excellent potential to augment historic mineralized resources.
Nevada Canyon considers this historical estimate to be reliable and relevant, but does not treat this historical estimate as current compliant mineral resources.
The current owner of the Olinghouse project is Lake Mountain Mining LLC, (LMM) a private Nevada corporation. LMM is currently reviewing its financing plans for additional exploration, required permits, economic studies and various capital expenditures with a view to a decision to restart production in the near future.
Nevada Canyon may acquire 100% of a production royalty in the amount of one percent (1%) of net smelter revenues on all minerals and products produced from certain properties including the Olinghouse project from Target, as following :
The term of the call option will be one (1) year, subject to an extension if the seller’s closing conditions are not fully met or if the buyer otherwise waives them. The full review of the agreement includes the following: (i) an upfront cash payment of US $ 200,000.00 upon execution of a final agreement. (ii) $ 2,000,000.00 to be paid by Buyer to Seller either (a) in cash or (b) in common shares of the capital stock of Nevada Canyon, subject to certain terms and conditions.
Subject to satisfactory due diligence and certain conditions, within 60 days of the date of the letter of intent, the parties will negotiate a definitive purchase option agreement for the proposed transaction which will supersede the conditions of the letter. of intention.
ON BEHALF OF THE BOARD
“Jeffrey A. Cocks“
Jeffrey A. Cocks
President and CEO
FOR MORE INFORMATION, PLEASE CONTACT: Nevada Canyon Gold Corp.
(TEL) – (888) 909-5548, (FAX) – (888) 909-1033
E-mail: [email protected]
The information published in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify such statements by using the words “may”, “will”, “should”, “the” “s ‘expects to “,” anticipates “,” continue “,” estimate “,” plan “,” intend “and similar expressions. Forward-looking statements involve risks and uncertainties that could cause actual results to occur. differ materially from those projected or anticipated. These risks and uncertainties include, but are not limited to, general economic and business conditions, the effects of geopolitical unrest and continuing regional conflicts, competition, changes in technology and business practices. exploration, delays in the completion of various engineering and exploration programs, Forward-looking statements contained in this press release include statements regarding the potential mineralization and geological merits of the Company’s properties and various other factors beyond the control of Nevada Canyon Gold Corp. The Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information or future events, except as required by applicable securities legislation. Nevada Canyon Gold Corp. is neither a subscriber within the meaning of section 2 (a) (11) of the Securities Act of 1933 nor an investment company within the meaning of the Investment Company Act of 1940. Nevada Canyon Gold Corp. is not an investment adviser under the Investment Advisers Act of 1940. Nevada Canyon Gold Corp. is not registered with FINRA or SIPC. Investors are urged to carefully review the reports and documents that Nevada Canyon Gold Corp. files from time to time with the SEC, including its Annual Form 10K for the fiscal year ended December 31, 2020, quarterly and current reports.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/100868