Nevada Sunrise Acquires Option to Purchase Coronado VMS Property in Nevada and Announces Private Placement
Nevada Sunrise Acquires Option to Purchase
Coronado VMS Property in Nevada and
Announces Private Placement
/NOT FOR DISSEMINATION IN
THE UNITED STATES
OR TO
UNITED STATES
NEWSWIRE
SERVICES/
TSX Venture Exchange: NEV
VANCOUVER
,
June 7, 2018
/CNW/ - Nevada Sunrise Gold Corporation ("Nevada Sunrise" or the
"Company") (TSXV: NEV) is pleased to announce that it has entered into a 90-day due diligence
period related to an option to purchase the
Coronado
property ("Coronado", or the "Property"),
located in the Tobin Sonoma Range of
Pershing County, Nevada
, approximately 30 miles (48
kilometres) southeast of
Winnemucca
.
About
Coronado
Coronado
currently consists of approximately 109 unpatented claims totaling approximately 2,180
acres (882 hectares) located over an interpreted trend adjacent to the historic Big Mike copper
mine. Big Mike was discovered in the 1930s when a shallow, oxidized portion of the deposit was
located by prospectors. The area was explored further in the late 1960s by Cerro Corp. and a
deeper (greater than 300 feet, or 91 metres) high-grade massive sulphide lens was discovered by
drilling at Big Mike. In 1970, Ranchers Exploration and Development Company ("Ranchers")
developed the high-grade portion of the deposit with a small open pit mine that produced
approximately 25 million pounds of copper in 100,000 tons of ore grading 10.5% copper, which was
shipped directly to a smelter in
West Germany
. Heap leaching of lower-grade disseminated copper
ore was also carried out by Ranchers; approximately 300,000 tons of mineralized rock were treated.
Historical sampling also shows the presence of cobalt at Big Mike, with values in the deposit ranging
up to 2,500 parts per million cobalt, or 0.25% (Rye
et al
, Economic Geology, Vol. 79, 1984).
Nevada Sunrise believes that other hidden volcanogenic massive sulphide ("VMS") deposits could
exist at
Coronado
that would have escaped detection by historical exploration methods. During the
90-day due diligence period, Nevada Sunrise will commission Geotech Ltd. of
Aurora, Ontario,
Canada
to fly a Vertical Transient Electromagnetic ("VTEM") airborne survey over the Property. If
results of the VTEM survey warrant, Nevada Sunrise will exercise its right to proceed to a definitive
agreement for
Coronado
.
"Nevada Sunrise has received a unique opportunity to search for blind VMS deposits within a
greenstone belt in
Nevada
that remains underexplored," said
Warren Stanyer
, President and CEO of
the Company. "We are fortunate to be the first company to employ a highly-effective exploration
technique such as VTEM to an area that has been overlooked for this style of mineral deposit."
Theodore DeMatties
, CPG, PG, is the Company's designated Qualified Person for this news release
within the meaning of National Instrument 43-101 and has reviewed and approved the technical
information contained herein. Readers are cautioned that some of the technical information
described in this news release is historical in nature; however, the information is deemed credible
and was produced by professional geologists of the eras discussed. Mineralization located on
adjacent properties by historical exploration may not be present on
Coronado
.
Details of Private Placement
In conjunction with the proposed
Coronado
option to purchase, Nevada Sunrise wishes to announce
a private placement (the "Offering") of up to
$500,000
, consisting of 3,333,333 units (the "Units") at
a price of
$0.15
per Unit, each Unit consisting of one common share of the Company and one
common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to purchase one
common share at a price of
$0.25
(a "Warrant Share") for a period expiring on the earlier of three
years following the closing date of the Offering and, subject to the issuance of notice by the
Company in the manner provided for in the subscription agreements for the Offering, the day which
is 30 days after the date that the volume weighted average trading price of the common shares of
the Company on the TSX Venture Exchange (the "TSXV") exceeds
$0.40
per share over a period of
10 consecutive trading days.
Finder's fees may be payable to parties at arm's length to Nevada Sunrise that have introduced the
Company to certain subscribers participating in the Offering. Proceeds of the Offering will be used
for exploration expenses on the Company's
Nevada
properties, and for general working capital. The
Offering is subject to acceptance of the TSXV.
Details of Coronado Agreement Terms
Nevada Sunrise has negotiated the principal terms for the acquisition of a 100% interest in
Coronado
, subject to a 2.0% net smelter returns royalty ("NSR"). The acquisition is subject to the
negotiation and execution of a definitive agreement, which Nevada Sunrise will only proceed with if it
is satisfied with the results of its due diligence review. The definitive agreement will provide Nevada
Sunrise with the ability to acquire the interest in
Coronado
in consideration for cash and share
payments, and minimum exploration expenditures as described below (all dollar amounts listed are in
US dollars):
Schedule of Payments and Expenditures
Payment Due Dates
Cash
Payment
s
Share
Payment
s
Minimum
Exploration
Expenditures
Within 5 business days of execution
of definitive agreement
$30,000
200,000
$50,000
On or before
1st Anniversary of definitive agreement
$35,000
300,000
$100,000
On or before
2nd Anniversary of definitive agreement
$40,000
400,000
$150,000
On or before
3rd Anniversary of definitive agreement
$50,000
500,000
$300,000
On or before
4th Anniversary of definitive agreement
$1,250,000
600,000
$500,000
Totals:
$1,405,000
2,000,000
$1,100,000
Upon execution of a definitive agreement, Nevada Sunrise will have the right to accelerate the timing
of cash and share payments to the vendor at its discretion. If minimum exploration expenditures,
which include property maintenance costs, are exceeded in any year the excess expenditures will be
credited to a succeeding year. The vendor shall retain a 2.0% NSR royalty applicable to the
Property, half of which can be purchased by Nevada Sunrise (i.e., 1.0%) at any time for
$1,500,000
,
minus any advance royalty payments made by the Company. An advance royalty payment of
$500,000
would be payable to the vendors upon completion of a feasibility study. Should additional
staking be required at
Coronado
, the vendors shall have a right of first refusal to perform the work.
A 2.5 mile (4 kilometres) area of interest clause applies to the claims boundaries within the Property.
On the 4
th
Anniversary payment due date, if the cash spot price of copper as quoted on the London
Metal Exchange exceeds
$4.00
per pound, the payment due of
$1,250,000
will be increased to
$1,500,000
.
The terms of a definitive agreement for
Coronado
will be subject to approval of the Board of
Directors of Nevada Sunrise, and the transaction is subject to acceptance by the TSXV.
Warrants Amendments Approved by TSXV
On
May 31, 2018
, the TSXV consented to the reduction of the exercise price and extension of term
for 2.45 million warrants issued on
June 16, 2016
. The original exercise price of warrants was
$0.32
, and the new exercise price of the warrants is
$0.25
. The original expiry date of warrants was
June 16, 2018
, which has now been extended to a new expiry date of
June 16, 2020
.
About Nevada Sunrise
Nevada Sunrise is a junior mineral exploration company with a strong technical team based in
Vancouver, BC
,
Canada
, that holds interests in gold, cobalt, copper and lithium exploration projects
in the
State of Nevada, USA
.
The Company's two key gold assets include a 100% interest in the Golden Arrow project near
Tonopah
, currently the subject of a transaction with Emgold Mining Corporation (TSXV: EMR), and a
21% interest in a joint venture at Kinsley Mountain with Liberty Gold Inc. (TSX: LGD) near
Wendover
, with each of the properties subject to certain production royalties.
In
November 2017
, Nevada Sunrise announced an option to earn a 100% interest in the historic
Lovelock Cobalt Mine property, located approximately 100 miles (150 kilometers) east of Reno. In
March 2018
, the Company announced options to earn 100% interests in the Treasure Box and
Boyer Mine copper properties, located approximately 3.6 miles (5.8 kilometers) southwest of the
Lovelock Cobalt Mine.
Nevada Sunrise began acquisitions of
Nevada
lithium properties in 2015, which includes 100%
interests in the Neptune,
Jackson Wash
and Aquarius projects, a 50% interest in the Gemini project
(Eureka Resources Inc. (TSXV: EUK) holds a 50% interest), and a 100% interest in the Atlantis
project, currently under option to American Lithium Corp. (TSXV: LI).
Forward Looking Statements
All statements in this release, other than statements of historical fact, are "forward-looking
information" with respect to Nevada Sunrise Gold Corporation ("Nevada Sunrise") within the
meaning of applicable Canadian securities laws, including statements that address future mineral
production, reserve potential, exploration drilling, the future price of gold, potential quantity and/or
grade of minerals, potential size of a mineralized zone, potential expansion of mineralization, the
timing and results of current or future mineral resource estimates, or other study, proposed
exploration and development of our exploration properties and the estimation of mineral resources,
the expected terms of the definitive agreement for the
Coronado
property and the expected
completion of the private placement. Forward-looking information is often, but not always,
identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect",
"project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions,
or describes a "goal", or variation of such words and phrases or state that certain actions, events
or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. These
statements involve known and unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievement of Nevada Sunrise to differ materially from those
anticipated in such forward-looking information.
Such factors include, among others, risks related to the actual results of proposed exploration at
the
Coronado
property, reliance on technical information provided by third parties on any of our
exploration properties, including access to and interpretation of historical information on the
Coronado
property as well as specific historical data associated with drill results and sampling
from the adjacent areas to the
Coronado
property, information from the public domain, current
exploration and development activities; changes in project parameters as plans continue to be
refined; current economic conditions; future prices of commodities; possible variations in grade or
recovery rates; failure of equipment or
processes to operate as anticipated; the failure of
contracted parties to perform; failure of Nevada Sunrise or its contractors to complete anticipated
work programs; labor disputes and other risks of the mining industry; delays in obtaining
governmental approvals, financing or in the completion of exploration, as well as those factors
discussed in the section entitled "Risk Factors" in the Company's Management Discussion and
Analysis for the Six Months ended
March 31, 2018
, which is available under Company's SEDAR
profile at
www.sedar.com
Although Nevada Sunrise has attempted to identify important factors that could cause actual
actions, events or results to differ materially from those described in forward-looking information,
there may be other factors that cause actions, events or results not to be as anticipated, estimated
or intended. There can be no assurance that such information will prove to be accurate as actual
results and future events could differ materially from those anticipated in such statements. Nevada
Sunrise disclaims any intention or obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise. Accordingly, readers should not
place undue reliance on forward-looking information.
Forward-looking statements are made as of the date hereof and accordingly are subject to change
after such date. Except as otherwise indicated by Nevada Sunrise, these statements do not reflect
the potential impact of any non-recurring or other special items or of any dispositions,
monetizations, mergers, acquisitions, other business combinations or other transactions that may
be announced or that may occur after the date hereof. Forward-looking statements are provided for
the purpose of providing information about management's current expectations and plans and
allowing investors and others to get a better understanding of our operating environment. Nevada
Sunrise does not undertake to update any forward-looking statements that are included in this
document, except in accordance with applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined
in the policies of TSX Venture Exchange) accepts responsibility for the adequacy of
accuracy of this release. The Securities of Nevada Sunrise Gold Corporation have not been
registered under the United States Securities Act of 1933, as amended, and may not be
offered or sold within
the United States
or to the account or benefit of any U.S. person.
SOURCE
Nevada Sunrise Gold Corporation
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%SEDAR: 00026824E
For further information:
Warren Stanyer, President and Chief Executive Officer, Telephone: (604)
428-8028, Facsimile: (604) 484-7143, email: [email protected]
CO: Nevada Sunrise Gold Corporation
CNW 07:55e 07-JUN-18