-1.5% GOR ON Nulegacy’S Red Hill Property Sold FOR ~ US$ 3 Million -
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PRESS RELEASE
-1.5% GOR ON NULEGACY’S RED HILL PROPERTY
SOLD FOR ~ US$ 3 MILLION -
For Immediate Release May 6, 2020
VANCOUVER – NuLegacy Gold (TSXV: NUG; OTCQB: NULG.F ) is pleased to welcome Metalla
Royalty & Streaming Ltd. (“Metalla”) as a new stakeholder in NuLegacy’s 108 square kilometer flagship
Red Hill property in the heart of Cortez gold trend of North-Central Nevada.
Metalla has announced the purchase (detailed below) of one half of the 3% gross overriding royalty (GOR)
currently held by Idaho Resources Corporation (“IRC”)* on NuLegacy’s Red Hill property to close June
1, 2020.
Valuing GORs is a complicated business made easier in this instance by the straightforward nature of the
purchase price for IRC; thus prorating the US$4 million purchase price for the total of 2% GOR purchased
(1.5% GOR on Red Hill and 0.5% GOR on Anglo/Zeke claims) values a 1% GOR in the Red Hill project
at ~US$2 million.i By comparison NuLegacy Gold, which owns/controls a 100% working interest in the
Red Hill property, has an aggregate market value of ~ C$32.5 million.ii
Please follow this link to an updated and refreshed Investor presentation:
https://nulegacygold.com/site/assets/files/6471/rift_anticline_as_goldrush_analogue-_may_1-_2020.pdf
On April 27, 2020, Metalla entered into a share purchase agreement to acquire, on an arm’s length basis,
100% of the issued and outstanding shares of IRC for a purchase price of US$4 million payable in cash and
shares of Metalla. Metalla is a precious metals royalty and streaming company listed for trading on the
NYSE American and TSX Venture exchanges.
IRC is a privately held Nevada corporation which, upon closing of the Metalla transaction, will hold a 1.5%
GOR over NuLegacy’s Red Hill property located on trend to the southeast of the Cortez operations and
Goldrush project. IRC also holds a 0.5% gross overriding royalty on the Anglo/Zeke claims block located
immediately northwest of and adjacent to NuLegacy’s Red Hill property and owned by Nevada Gold, and
certain reversionary rights to acquire certain mineral claims under the Cortez joint venture plan of
operations between Barrick Gold and Newmont Mining should such joint venture choose to relinquish their
mineral claim interests. Metalla reports that closing of the IRC acquisition is subject to customary closing
conditions and exchange approvals and is expected to occur on or around June 1, 2020.
* As part of a reorganization of the estate of IRC’s late founder, IRC will dividend out the other half of
the 3% GOR (i.e. 1 ½% GOR) to its existing shareholders prior to closing of the Metalla transaction.
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About NuLegacy Gold Corporation: Focused on confirming high-grade Carlin-style gold deposits on its
premier 108 sq. km (42 sq. mile) district scale Red Hill Property in the Cortez gold trend of Nevada. The
Red Hill Property is located on trend and adjacent I to the three multi -million ounce Carlin-type gold
deposits (the Pipeline, Cortez Hills and Goldrush deposits) that are amongst Barrick Gold’s largest, lowest
cost and politically safest gold mineII.
I The similarity and proximity of these deposits in the Cortez Trend is not necessarily indicative of the gold
mineralization in NuLegacy’s Red Hill Property.
II As extracted from Barrick’s Q4-2013 and Q1-2014 reports. As reported by Barrick, the Goldrush resource
contains 8,557,000 indicated ounces of gold within 25.78 million tonnes grading ~10.57 g/t and 1,650,000
inferred ounces within 5.6 million tonnes grading ~9.0 g/t.
ON BEHALF OF NULEGACY GOLD CORPORATION
Albert J. Matter, Chief Executive Officer & Director
Tel: +1 (604) 639-3640
Email: [email protected]
For more information about NuLegacy visit: www.nulegacygold.com or www.sedar.com.
Dr. Roger Steininger, a Director of NuLegacy, is a Certified Professional Geologist (CPG 7417) and the
qualified person as defined by NI 43- 101, Standards of Disclosure for Mineral Projects, responsible for
approving the scientific and technical information contained in this news release.
Required Disclaimer: Metalla’s proposed purchase price for IRC is not necessarily indicative of and may
bear no relation to the actual value of the Red Hill property or the market value of NuLegacy’s shares.
There are no known NI 43-101 resources or reserves in the Red Hill Property and any proposed exploration
programs are exploratory searches for commercial bodies of ore.
Cautionary Statement on Forward-Looking Information: This news release contains forward-looking
information and statements under applicable securities laws, which information and/or statements relate
to future events or future performance (including, but not limited to, the potential value and prospective
nature of the Red Hill Property and proposed future exploration and drilling programs thereon) and reflect
management’s current expectations and assumptions. Such forward-looking information and statements
reflect management’s current belie fs and are based on assumptions made by and information currently
available to the Company. Readers are cautioned that such forward -looking information and statements
are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results
to differ materially from those expected including, but not limited to, actual results of exploration activities,
unanticipated geological, stratigraphic and structural formations, environmental risks, operating risks,
accidents, labor issues, delays in obtaining governmental approvals and permits, the availability of
financing, market conditions, future prices for gold, changes in personnel and other risks in the mining
industry. There are no known resources or reserves in the Red Hill Property, any proposed exploration
programs are exploratory searches for commercial bodies of ore and the presence of gold resources on
properties adjacent or near the Red Hill Property including Goldrush is not necessarily indicative of the
gold mineralization on the Red Hill Property. There is also uncertainty about the spread of the COVID-19
virus and the impact it will have on the Company’s operations, personnel, supply chains, ability to procure
exploration equipment, contractors and other personnel on a timely basis or at all and economic activity
in general. All the forward-looking information and statements made in this news release are qualified by
these cautionary statements and those in our conti nuous disclosure filings available on SEDAR at
www.sedar.com. The forward-looking information and statements in this news release are made as of the
date hereof and the Company does not assume any obligation to update or revise them to reflect new events
or circumstances save as required by applicable law.
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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.
i This valuation assumes that a 1% GOR interest in the Red Hill property is equivalent to a 1% GOR interest
in the Anglo/Zeke claims and makes no adjustment for any differences in the nature, type, quantity, grade
and/or metal content, if any, of minerals situated on the Red Hill property and Anglo/Ze ke claims. This
valuation also attributes no value to the reversionary rights held by IRC. These assumptions are neither
promises nor guarantees, may be inaccurate and are subject to risks and uncertainties that may cause actual
results to differ materially from those expected.
ii Based on a total of 407,173,804 common shares outstanding and a closing price of C$0.08 per share on
the TSX Venture Exchange as of May 5, 2020.