Nubian Enters Agreement to Divest Excelsior Springs Exploration Project, Nevada, US
Nubian Enters Agreement to Divest Excelsior
Springs Exploration Project, Nevada, US
TORONTO
,
Aug. 31, 2020
/CNW/ - Nubian Resources Ltd. ("Nubian" or the "Company") (TSXV:
NBR) is pleased to announce that the Company has entered into a binding letter of intent ("LOI")
with Athena Silver Corporation (OTCQB: AHNR) ("Athena") for Athena to acquire the Company's
Excelsior Springs exploration project located in
Esmeralda County, Nevada
, USA (the "Property").
Nubian will retain a 1% NSR on the Property and Athena will have the right to purchase 0.5% for
$500,000
and the remaining 0.5% at fair market value. The completion of the transaction is
conditional upon the Company obtaining the prior approval of the transaction from the TSX Venture
Exchange (the "TSXV") and any other approvals required under applicable laws.
Under the terms of the LOI, Athena has paid a
US$10,000
deposit to Nubian for an exclusive 90-day
due diligence period during which time Nubian and Athena have agreed to finalize definitive
agreements with respect to the transaction, and Athena will make an application for listing on a
Canadian stock exchange and will raise a minimum of
US$750,000
. On closing, Athena will have a
maximum of 75 million common shares outstanding and will issue Nubian 50 million common shares
valued at
$0.05
per share, representing an approximate 40% interest in Athena. Nubian has agreed
to a hold period of six months from the date of issuance of the Athena consideration shares. The
Company intends to distribute all or a portion of the Athena consideration shares received by it to its
shareholders following the closing of the transaction as a return of capital. Any such distribution of
Athena shares would be subject to obtaining the prior approval of the Company's shareholders and
any required approvals of the TSXV.
Martin Walter
, President and CEO of Nubian, stated, "The divestment of the Excelsior Springs
property to Athena is expected to unlock the value in the Excelsior Springs property for shareholders
quicker given Nubian's focus on its properties in
Australia
and
Peru
."
The Excelsior Springs mining claims cover an area of 3.5 square kilometres including the historic
Buster mine, which has past production of about 15,000 tonnes (t) at 37 grams per tonne (g/t) gold
(Au) to a maximum depth of 70 metres (m). The Property is located in the Walker-Lane tectonic
zone of southern
Nevada
, which hosts a number of large historic gold mines. Total gold production
from the zone exceeded 20 million ounces (Moz), with notable deposits including
Goldfield
(5Moz),
Bullfrog (2Moz),
Tonopah
(2Moz), Mineral Ridge (1.5Moz) and Comstock (8Moz Au, 200Moz Ag).
Nubian owns 100% of the 140 unpatented claims at Excelsior Springs with two additional leased
patented claims that are subject to a 2% NSR on gold production. Exploration work in 2011 included
3,657m
of RC drilling with significant intercepts from that drilling program highlighted below:
GE08:
7.6m
at 5.1g/t Au from
93.0m
GE14:
7.6m
at 2.9g/t Au from
19.8m
GE02:
3.0m
at 4.7g/t Au from
0m
GE19:
6.1m
at 1.9g/t Au from
117.3m
and
GE15:
13.7m
at 0.8g/t Au from
61.0m
Gold mineralization discovered at Excelsior to date occurs in quartz vein stock-works and silicified
zones in hornfels and calc-silicate altered country rock and generally close to porphyry dykes. The
best mineralization (grade and thickness) is found in altered sediments immediately above porphyry
dykes that have intruded along existing east and east-northeast trending faults. The mineralized
stock-work vein zones are shallow and have a relatively flat plunge, making them amenable to open
pit mining methods, if economic zones are outlined.
Exploration to date has focused on a 2.5 km long section in the central part of the zone where
mineralization is at or near the surface. Surface mapping and an Induced Polarization (IP)
geophysical survey identified multiple zones of silicification that correlate well with the known
mineralization. Many of the silicified zones defined by the IP (resistivity highs) have not been tested
by drilling and remain targets for future exploration, approximately 4km of the zone is concealed
beneath thin transported cover.
A
National Instrument
43–101 technical report was filed by the Company on the Excelsior Springs
Project in 2010.
Technical information in this news release has been reviewed and approved by Dr.
Scott Jobin-
Bevans
(P.Geo.), a Director of Nubian, who is a Qualified Person under the definitions established
by the National Instrument 43-101.
About Athena Silver Corporation
Athena Silver Corporation is focused on the exploration and development of precious metals in the
Western United States. Its core holding is 36 unpatented claims totaling over 720 acres located in
the Historic Calico Mining District in San Bernardino County, California. Athena's unpatented claims
are located adjacent to the historic silver deposits known as Langtry and Pan American Silver's
Waterloo. Athena also owns more than 800 acres of investment property in
San Bernardino County,
California
and has an option to acquire a 1% royalty on the Langtry Silver Deposit.
About Nubian Resources
Nubian Resources Ltd. is a public traded precious and base metals exploration company listed on
the TSX Venture Exchange. The Company is managed by a team of experienced mining and
geological professionals. In
May 2020
, Nubian entered into an agreement to acquire and develop the
Yandoit Gold Project in central
Victoria, Australia
and in
July 2020
, Nubian entered into an
agreement to acquire Stavely Mineral Limited's Fosterville East project and its
Lefroy
and Matthina
projects in
Tasmania
. Nubian's main asset is the Esquilache Silver Project located within the Tintaya
porphyry copper belt of southern
Peru
.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
Caution Regarding Forward Looking Statements
Certain statements contained in this press release constitute forward-looking information. These
statements relate to future events or future performance. The use of any of the words "could",
"intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements
relating to matters that are not historical facts are intended to identify forward-looking information
and are based on Nubian's current belief or assumptions as to the outcome and timing of such future
events. Actual future results may differ materially. In particular, this release contains forward looking
information relating to, among other things, statements with respect to the potential completion of
the sale of the Property, the consideration payable to the Company and the intended distribution of
the Athena shares received by the Company as a return of capital. Various assumptions or factors
are typically applied in drawing conclusions or making the forecasts or projections set out in forward-
looking information. Those assumptions and factors are based on information currently available to
Nubian. Although such statements are based on reasonable assumptions of Nubian's management,
there can be no assurance that any conclusions or forecasts will prove to be accurate.
Forward-looking information contained in this news release is based on certain factors and
assumptions regarding, among other things. While Nubian considers these assumptions to be
reasonable based on information currently available to them, they may prove to be incorrect.
Forward looking information involves known and unknown risks, uncertainties and other factors which
may cause the actual results, performance or achievements to be materially different from any future
results, performance or achievements expressed or implied by the forward-looking information. Such
factors include risks inherent in the exploration and development of mineral deposits, including risks
relating to changes in project parameters as plans continue to be redefined, risks relating to
variations in grade or recovery rates, risks relating to changes in mineral prices and the worldwide
demand for and supply of minerals, risks related to the COVID-19 pandemic and current global
financial conditions, increased competition, access and supply risks, reliance on key personnel,
operational risks, regulatory risks, including risks relating to obtaining necessary licenses and
permits, financing, capitalization and liquidity risks, title and environmental risks and risks relating to
delay or failure to satisfy the closing conditions relating to sale of the Property and in connection with
recently announced acquisitions in
Australia
.
The forward-looking information contained in this release is made as of the date hereof, and Nubian
is not obligated to update or revise any forward-looking information, whether as a result of new
information, future events or otherwise, except as required by applicable securities laws.
Because of the risks, uncertainties and assumptions contained herein, investors should not place
undue reliance on forward-looking information. The foregoing statements expressly qualify any
forward-looking information contained herein.
SOURCE
Nubian Resources Ltd.
View original content:
http://www.newswire.ca/en/releases/archive/August2020/31/c3801.html
%SEDAR: 00024798E
For further information:
Martin Walter, Chief Executive Officer, Nubian Resources Ltd., at +1-416-
389-5692 or [email protected].
CO: Nubian Resources Ltd.
CNW 07:00e 31-AUG-20