Fremont Closes Sale of Coyote and Rossi Claim Blocks to Westward Gold Inc.
Fremont Closes Sale of Coyote and Rossi
Claim Blocks to Westward Gold Inc.
Vancouver, British Columbia--(Newsfile Corp. - January 19, 2023) - Fremont Gold Ltd. (TSXV: FRE)
(OTCQB: FRERF) (FSE: FR20) ("
Fremont
" or the "
Company
") is pleased to announce that the
Company has closed the previously announced sale of its 100% interest in the Coyote and Rossi claim
blocks, located along the northern Carlin Trend in Elko County, Nevada, to Westward Gold Inc.
("
Westward
").
Pursuant to the definitive claims acquisition agreement (the
"Agreement"
) with Westward, Fremont has
received the following consideration:
US$19,647 in cash
600,000 common shares of Westward with the following escrow provisions:
200,000 shares to be released on the four-month anniversary of closing (May 17, 2023)
400,000 shares to be released on the eight-month anniversary of closing (September 17,
2023)
A 2.0% net smelter return royalty on the Coyote claims (the "
Coyote NSR"
).
Half (1.0%) of the
Coyote NSR may be repurchased by Westward at any time for a payment of US$2 million in cash
A 1.0% net smelter return royalty on the Rossi claims (the
"Rossi NSR"
).
Half (0.5%) of the Rossi
NSR may be repurchased by Westward at any time for a payment of US$1.5 million in cash.
*
*
There is an existing 2.0% net smelter return royalty on the 12 Rossi Claims, held by Nevada Select
Royalty, Inc. ("
NV Select
"). Westward must abide by the material terms of the royalty deed entered
into by Fremont and NV Select on April 10, 2019
The Coyote and Rossi Claims are part of what the Company has traditionally referred to as the North
Carlin property and comprises 111 unpatented mining claims (99 Coyote claims and 12 Rossi claims)
administered by the Bureau of Land Management (
"BLM"
) covering an area of ~9 km
2
at the northern
end of the Carlin Trend.
Fremont's President and CEO commented, "We are delighted with the terms of this transaction which
enables the Company to retain a significant royalty in Nevada's most prolific gold trend while also
realizing cash and Westward shares.
The disposal of the Coyote and Rossi claims enables the
Company to direct resources to core projects such as Cobb Creek and the evaluation of opportunities
within the Western Tethyan belt in Armenia.
The Company is actively pursuing the disposal of other non-
core properties within its Nevada portfolio."
Westward Gold is a mineral exploration company focused on developing the Toiyabe, Turquoise
Canyon, and East Saddle Projects located in the Cortez Hills area of Lander County, Nevada, and the
Coyote and Rossi Projects located along the Carlin Trend in Elko County, Nevada.
Amendment to Griffon agreement
Separately, the Company is also pleased to announce that it has amended the terms of its option
agreement relating to the Griffon gold project ("
Griffon
"), a past-producing gold mine located at the
southern end of the Cortez Trend in White Pine county, Nevada.
In December 2019, the Company entered into an option agreement (the "
Option Agreement
") with Pilot
Gold (USA) Inc. ("
Pilot
"), a wholly owned subsidiary of Liberty Gold Corp., to acquire a 100% interest in
Griffon (see news release dated December 18, 2019).
In January 2021, the Company announced that it
had amended the terms of the Option Agreement (see news release dated January 18, 2021).
The terms of the Option Agreement as amended in January 2021 included a requirement that on
December 16, 2022, Fremont would pay US$75,000 in cash to Pilot.
Pilot and the Company have
agreed to amend the terms of the Option Agreement such that Fremont will issue 1,000,000 common
shares to Pilot at a deemed price of $0.08 per share in lieu of making the option payment in cash.
Pursuant to the policies of the TSX Venture Exchange, all common shares issued in connection with the
Option Agreement (as amended) are subject to a four month hold period.
Appointment of Vice President of Business Development
The Company is pleased to announce that William Richard (Rick) Brown has joined Fremont's
management team as Vice President of Business Development.
Mr. Brown is a seasoned geologist
with many years of management experience in the junior mining industry.
He was VP Business
Development and a director for Amarillo Gold Corp from 2005 to 2017 and formerly President and
Manager of Minera Aquiline Argentina, which was purchased by Pan American Silver for $626M in
2009.
The Board welcomes Mr. Brown and looks forward to working with him on the Company's endeavors.
On behalf of the Board of Directors,
"Dennis Moore"
Dennis Moore
President and CEO
Fremont Gold Ltd.
For further information, contact:
Corporate Information
Fremont Gold Ltd.
Dennis Moore, President and CEO
Telephone:
+351 9250 62196
www.fremontgold.net
https://twitter.com/GoldFremont
https://www.linkedin.com/company/fremont-gold/
Neither the 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.
Forward-looking statements
Certain statements and information contained in this press release constitute "forward-looking
statements" within the meaning of applicable Canadian securities laws. Forward-looking statements in
this news release relate to the completion of the Private Placement and the proposed use of proceeds
of the private placement. Such forward-looking statements are based on several material factors and
assumptions and involve known and unknown risks, uncertainties and other factors which may cause
the completion of the Private Placement or the actual use of proceeds to differ materially from those
anticipated in such forward-looking information. You are cautioned not to place undue reliance on
forward-looking statements contained in this press release. Actual results and future events could
differ materially from those anticipated in such statements. Fremont undertakes no obligation to
update or revise any forward-looking statements included in this press release if these beliefs,
estimates and opinions or other circumstances should change, except as otherwise required by
applicable law.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/151823