Nevada Sunrise Amends Option to Purchase Coronado VMS Property in Nevada
Nevada Sunrise Amends Option to Purchase
Coronado VMS Property in Nevada
TSX Venture Exchange: NEV
VANCOUVER, BC
,
Jan. 31, 2022
/CNW/ - Nevada Sunrise Gold Corporation ("Nevada Sunrise" or
the "Company") (TSXV: NEV) is pleased to announce that it has negotiated an amendment to the
terms of an option agreement whereby the Company has the right to purchase a 100% interest in
the Coronado VMS property ("Coronado", or the "Property"), located in the Tobin Sonoma Range of
Pershing County, Nevada
, approximately 30 miles (48 kilometres) southeast of
Winnemucca
. A letter
of intent for the
Coronado
option agreement was first announced by the Company on
June 7, 2018
,
and a definitive agreement was announced on
September 28, 2018
.
Details of the Coronado Amended Option Agreement Terms
Nevada Sunrise retains the right to acquire a 100% interest in
Coronado
, subject to a 2.0% net
smelter returns royalty ("NSR"), with certain buydown provisions, in consideration for the amended
cash and share payments to the vendors and minimum exploration expenditures as described
below (all dollar amounts listed are in US dollars unless marked otherwise):
Schedule of Payments and Expenditures
Payment Due Dates
Cash
Payment
s
Share
Payment
s
Minimum
Exploration
Expenditures
Within 5 business days of TSXV
acceptance of the Agreement
$30,000
(paid)
200,000
(paid)
$50,000
(Incurred)
On or before 1st anniversary
of TSXV acceptance of the Agreement
$35,000
(paid)
300,000
(paid)
$100,000
(incurred)
On or before 2nd anniversary
of TSXV acceptance of the Agreement
$40,000
(paid)
400,000
(paid)
$150,000
(Incurred)
On or before 3rd anniversary
of TSXV acceptance of the Agreement
$50,000
(pending)
500,000
(pending)
$300,000
(pending)
On or before 4th anniversary
of TSXV acceptance of the Agreement
$50,000
(amended)
500,000
(amended)
$300,000
(amended)
On or before 5th anniversary
of TSXV acceptance of the Agreement
$50,000
(amended)
500,000
(amended)
$300,000
(amended)
On or before 6th anniversary
of TSXV acceptance of the Agreement
$50,000
(amended)
500,000
(amended)
$300,000
(amended)
On or before 7th anniversary
of TSXV acceptance of the Agreement
$50,000
(amended)
500,000
(amended)
$300,000
(amended)
On or before 8th anniversary
of TSXV acceptance of the Agreement
(subject to the Company's completion of a
pre-feasibility study)
$1,050,000
(amended)
600,000
(amended)
n/a
Totals:
$1,405,000
4,000,000
$1,800,000
Nevada Sunrise retains the right to accelerate the timing of cash and share payments to the
vendors 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. On
the 8
th
anniversary payment due date, and if a pre-feasibility study has been completed, and if the
cash spot price of copper as quoted on the London Metal Exchange exceeds
$4.00
per pound, then
the cash payment due of
$1,050,000
will be increased to
$1,300,000
.
The vendors shall retain a 2.0% NSR applicable to the Property, 50% of which can be purchased for
up to five years after the effective date of the Agreement (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.
The amending agreement for
Coronado
is subject to acceptance by the TSXV. For more information
about
Coronado
, including maps and photos,
click here
.
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, copper, cobalt and lithium exploration projects
located in the
State of Nevada, USA
.
The Company's key gold asset is a 20.01% interest in a joint venture with New Placer Dome Gold
Corp. (TSXV: NGLD) at the Kinsley Mountain Gold Project ("Kinsley Mountain") near
Wendover
.
Nevada Sunrise has the right to earn a 100% interest in the Coronado VMS Project, located
approximately 48 kilometers (30 miles) southeast of
Winnemucca
. The Company owns a 15%
interest in the historic Lovelock Cobalt Mine and the Treasure Box copper properties, each located
approximately 150 kilometers (100 miles) east of
Reno
, with Global Energy Metals Corp. (TSXV:
GEMC) holding an 85% participating interest.
Nevada Sunrise owns 100% interests in the Jackson Wash and Gemini lithium projects, both of
which are located in
Esmeralda County
. The Company owns Nevada water right Permit 86863,
located in the Lida Valley basin, near Lida,
Nevada
.
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 and other metals,
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 studies, proposed exploration and development of our exploration properties and the
estimation of historical mineral resources on the Company's mineral properties, including the
Coronado
property. 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 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 Year Ended
September 30, 2021
, 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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For further information:
Warren Stanyer, President and Chief Executive Officer; Telephone: (604)
428-8028, Facsimile: (604) 684-9365, email: [email protected], Website:
http://www.nevadasunrise.ca
CO: Nevada Sunrise Gold Corporation
CNW 18:29e 31-JAN-22