Nevada Sunrise Signs Definitive Option to Purchase Coronado VMS Property in Nevada
Nevada Sunrise Signs Definitive Option to
Purchase Coronado VMS Property in Nevada
TSX Venture Exchange: NEV
VANCOUVER
,
Sept. 28, 2018
/CNW/ - Nevada Sunrise Gold Corporation ("Nevada Sunrise" or the
"Company") (TSXV: NEV) is pleased to announce that it has entered into a definitive agreement (the
"Agreement") for an option 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
.
Details of Coronado Agreement Terms
Nevada Sunrise can acquire a 100% interest in
Coronado
, subject to a 2.0% net smelter returns
royalty ("NSR") with certain buydown provisions (the "NSR Buydown"), in consideration for 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
200,000
$50,000
On or before 1st anniversary
of TSXV acceptance of the Agreement
$35,000
300,000
$100,000
On or before 2nd anniversary
of TSXV acceptance of the Agreement
$40,000
400,000
$150,000
On or before 3rd anniversary
of TSXV acceptance of the Agreement
$50,000
500,000
$300,000
On or before 4th anniversary
of TSXV acceptance of the Agreement
$1,250,000
600,000
$500,000
Totals:
$1,405,000
2,000,000
$1,100,000
Nevada Sunrise will have 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. For
the purposes of an anniversary common shares payment, the value of such payment by Nevada
Sunrise to the vendors shall be calculated at a minimum price of
CAD$0.15
per common share, and
if the closing price of the Company's common shares on the TSXV on the business day prior to any
anniversary date when a common shares payment is due and payable is less than
CAD$0.15
, the
monetary difference between
CAD$0.15
and the closing share price of the Company shall be paid to
the vendors in cash. 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, then the cash payment due of
$1,250,000
will be increased to
$1,500,000
.
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.
After five years and for a period of up to ten years after the effective date of the Agreement, the
NSR Buydown shall be adjusted according to the following calculations: (i) if the London Metal
Exchange monthly average price for copper in the month prior to exercise of the NSR Buydown is
less than or equal to
$4.00
per pound, then no adjustment to the NSR Buydown shall be made; (ii) if
the London Metal Exchange monthly average price for copper in the month prior to exercise of the
NSR Buydown is greater than
$4.00
per pound, then the price of the NSR Buydown shall be
adjusted by multiplying the NSR Buydown by a factor consisting of the London Metal Exchange
monthly average price for copper in the month prior to exercise of the NSR Buydown divided by
$4.00
. Beyond ten years after the effective date of the Agreement, the Company's NSR Buydown
right will expire, and there will be no specific right for Nevada Sunrise to acquire a portion of the
NSR.
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 kilometre) area of interest clause applies to the claims boundaries
within the Property.
The
Coronado
transaction is subject to acceptance by the TSXV.
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.
Nevada Sunrise has an option to earn a 100% interest in the historic Lovelock Cobalt Mine and
Treasure Box copper properties, located approximately 100 miles (150 kilometers) east of
Reno
,
which are currently the subject of a proposed transaction with Global Energy Metals Corp. (TSXV:
GEMC). In
March 2018
, the Company announced an option to earn a 100% interest in historic
Boyer Mine copper property, located adjacent to the Treasure Box claims. In
September 2018
, the
Company announced an option to earn a 100% interest in the Coronado VMS project approximately
30 miles (48 kilometres) southeast of
Winnemucca
.
Nevada Sunrise owns 100% interests in the Neptune,
Jackson Wash
and Aquarius lithium projects, a
50% interest in the Gemini lithium project (Eureka Resources Inc. (TSXV: EUK) holds a 50%
interest), and a 100% interest in the Atlantis lithium 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 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 Nine 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) 484-7143, email: [email protected]
CO: Nevada Sunrise Gold Corporation
CNW 19:20e 28-SEP-18