Fremont to Sell Gold Canyon Project to McEwen Mining Inc.
Fremont to Sell Gold Canyon Project to McEwen Mining
Inc.
Vancouver, British Columbia--(Newsfile Corp. - August 16, 2019) - Fremont Gold Ltd. (TSXV: FRE) (FSE: FR2) (OTC Pink:
USTDF) ("Fremont" or the "Company") is pleased to announce that it is selling its rights and interest in the Gold Canyon project,
located in Eureka County, Nevada, to McEwen Mining Inc. ("McEwen").
Fremont has entered into an asset purchase agreement (the "Agreement") with McEwen to sell its rights and interest in the Gold
Canyon Option Agreement, entered into with Nevada Select Royalty, Inc., a wholly-owned subsidiary of Ely Gold Royalties Inc.
(see news release dated January 11, 2018), in exchange for 300,000 McEwen common shares.
"Selling Gold Canyon appreciably increases Fremont's financial flexibility," said Blaine Monaghan, CEO of Fremont.
"It gives us
the ability to generate a significant non-dilutive capital infusion, through the sale of any McEwen shares, which will be helpful as
we evaluate opportunities that can add immediate and long-term shareholder value. Further, the sale demonstrates
management's ability to generate and maximize the returns from the present portfolio."
Fremont continues to evaluate opportunities to acquire an advanced-stage gold project that has the potential to host an
economic deposit with a minimum of 1.0 million ounces of gold in the Western U.S.
The common shares of McEwen to be issued under the Agreement will be subject to a 4 month hold period from the date of
closing and is subject to regulatory approval. The Agreement is expected to close by August 23, 2019.
About Fremont Gold
Fremont's mine-finding management team has assembled a portfolio of high-quality gold projects in Nevada with the goal of
making a new discovery. Fremont's Gold Canyon is a past producing gold mine adjacent to McEwen's Gold Bar mine. Other
projects include North Carlin, Goldrun, Hurricane, and Roberts Creek. We are aligned with our shareholders: Insiders own over
20% of Fremont.
On behalf of the Board of Directors,
"Blaine Monaghan"
CEO
Telephone:
+1 604-676-5664
Email:
www.fremontgold.net
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 U.S. securities laws and "forward-looking information" within the meaning of applicable Canadian
securities laws, which are referred to collectively as "forward-looking statements". The United States Private Securities
Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. Forward-looking statements are
statements and information regarding possible events, conditions or results of operations that are based upon assumptions
about future economic conditions and courses of action. All statements and information other than statements of historical
fact may be forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such
as "seek", "expect", "anticipate", "budget", "plan", "estimate", "continue", "forecast", "intend", "believe", "predict", "potential",
"target", "may", "could", "would", "might", "will" and similar words or phrases (including negative variations) suggesting future
outcomes or statements regarding an outlook. Forward-looking statements in this and other press releases include but are
not limited to statements and information regarding the expected closing date of the Agreement, if it closes at all, and the
future sale of the McEwen shares. Such forward-looking statements are based on a number of material factors and
assumptions and involve known and unknown risks, uncertainties and other factors which may cause actual results,
performance or achievements, or industry results, 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/47006