Nevada Sunrise options Lovelock Cobalt Mine and Treasure Box Properties in Nevada to Global Energy Metals Corp.
Nevada Sunrise options Lovelock Cobalt Mine
and Treasure Box Properties in Nevada to
Global Energy Metals Corp.
TSX Venture Exchange: NEV
VANCOUVER
, Sept. 11, 2018 /CNW/ -
Nevada Sunrise Gold Corporation
("Nevada Sunrise" or
the "Company") (TSXV: NEV) announced today that it has executed a non-binding letter of intent (the
"LOI") with Global Energy Metals Corp. ("Global Energy") (TSXV: GEMC) to acquire an 80%
interest in the Lovelock Cobalt Mine (the "Lovelock Mine") and the Treasure Box Project ("Treasure
Box"), (together, the "Property") located in
Churchill County
, approximately 150 kilometres (100
miles) east of the Tesla Gigafactory in
Sparks, Nevada
.
Project Highlights
Nevada Cobalt:
The right place at the right time in a superior mining jurisdiction, which hosts
several promising copper-gold projects nearby and benefits from having excellent infrastructure.
Strategically Situated:
Located in the Stillwater Range with good access, infrastructure in
place and only 150 kilometres east of
Sparks, Nevada
, home to the world's largest battery
factory -
Tesla's Gigafactory 1
.
Historic Producer:
Limited, yet high-grade, production of cobalt, nickel and copper in the
1880s, but has never been thoroughly explored in the modern era.
High-Grade Cobalt:
The general average of the 200 tons shipped from initial production at the
Lovelock Mine was
14 percent cobalt
and
12 percent nickel
(
Source: "Mineral Resources of
the United States
for 188
5
"
, published 1886
).
Drill Ready:
Discovery phase exploration program expected to include detailed geological
mapping, chip and channel sampling, together with magnetic surveys.
District Opportunity:
Region shows strong enrichment in cobalt, nickel and copper making it
very attractive for further exploration and expansion through other attractive growth
opportunities.
Terms of the LOI
Global Energy entered into the LOI with Nevada Sunrise to acquire an 80% interest in the Property
subject to Nevada Sunrise first acquiring the interest pursuant to an underlying agreement with a
third party vendor. In order to exercise the option, Global Energy is required to complete the
following:
A. Issue to Nevada Sunrise of such number of common shares in the capital of Global Energy as is
equal to USD
$200,000
at a deemed price per share equal to the greater of: (a)
$0.15
; and (b) the
Volume Weighted Average of the closing price of Global Energy's shares for the 20 trading days
immediately prior to the execution of a definitive agreement (the "Agreement").
B. Assume all future cash payments to the underlying vendor payable as scheduled below subject to
an existing 2.0% net smelter royalty (the "Existing Royalty"):
December 22, 2018
: USD
$20,000
in cash;
December 22, 2019
: USD
$25,000
in cash; and
December 22, 2020
: USD
$30,000
in cash.
C. Reimburse Nevada Sunrise with common shares of Global Energy for the issuance by Nevada
Sunrise of its common shares to the underlying vendor, payable as scheduled below:
December 22, 2018
: such number of shares as is equal in value to 200,000 shares of Nevada
Sunrise on the day prior to their issuance;
December 22, 2019
: such number of shares as is equal in value to 250,000 shares of Nevada
Sunrise on the day prior to their issuance; and
December 22, 2020
: such number of shares as is equal in value to 300,000 shares of Nevada
Sunrise on the day prior to their issuance.
D. Incur USD
$2,500,000
in exploration expenditures as follows:
USD
$1,000,000
in exploration expenditures by the second anniversary date of the Agreement,
and
an additional
USD$1,500,000
in exploration expenditures by the third anniversary date of the
Agreement.
Closing of the acquisition is subject to completion of due diligence review of the Property,
satisfaction of the conditions specified by the LOI including but not limited to Global Energy
undertaking and closing an equity financing of not less than
$500,000
and the acceptance of the
Agreement by the TSX Venture Exchange.
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 the completion
of the transaction for the Lovelock Mine and Treasure Box properties with Global Energy Resource
Corp., future mineral exploration activities, reserve potential, exploration drilling, potential quantity
and/or grade of minerals, potential size or expansion of a mineralized zone, the timing and results
of future resource estimates, or other study, proposed exploration and development of our
exploration properties and the estimation of mineral resources. 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 interpretation and actual results of
historical exploration at Nevada Sunrise's exploration properties,, reliance on technical information
provided by third parties on any of our exploration properties, including access to historical
information on exploration properties, 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; 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
June 30
, 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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For further information:
Warren Stanyer, President and Chief Executive Officer, Telephone: (604)
428-8028, Facsimile: (604) 684-9365, email: [email protected]
CO: Nevada Sunrise Gold Corporation
CNW 08:35e 11-SEP-18