NV Gold Acquires Cortez-Trend Gold Project
NV Gold Corporation (TSX.V - NVX) (“NV Gold” or the “Company”) is pleased to announce it has signed a Letter Of Intent (the “L.O.I.”) to purchase a 100% interest, subject to a 1% NSR royalty, in the Afgan-Kobeh project located in Eureka County Nevada. The project is to be acquired from Gold Standard Royalty (Nevada) Inc. (“GPR” or the “Vendor”) and is subject to the terms described below.
The Afgan-Kobeh project, which has been the subject of previous work by several operators, covers approximately 2,180 acres and consists of 109 unpatented claims. In 2004, Castleworth Ventures Inc. reported a NI 43-101 compliant resource estimate in respect of the property comprising an indicated gold resource of 50,000 ounces (1.85 million tons at an average grade of 0.027 oz Au/ton (0.926 g Au/t)) and an inferred gold resource of 34,000 ounces (1.29 million tons at an average grade of 0.026 oz Au /ton (0.891 g Au/t)) using a cut-off of 0.010 oz Au/ton (0.343 g Au/t), based on 134 drill holes completed prior to 1998. The historic report also recommends exploration of several targets established from the accumulation of earlier work. This project is located in northeastern Nevada, approximately 28 miles northwest of the town of Eureka along the Battle Mountain-Eureka Trend (also referred to as the Cortez Trend).
The Battle Mountain-Eureka gold trend is one of the world’s most prolific gold mining districts. It is a belt of gold deposits, primarily hosted in Paleozoic sediments, that is 10-20 miles wide and over 100 miles long, extending in a north-northwest direction through the town of Eureka, Nevada. Gold was first discovered in the area in the 1870s. Nevada currently produces over 80% of all the gold mined in the United States.
Under the LOI, NV Gold will purchase the project by paying the Vendor US$200,000 in cash, of which US$100,000 is to be paid on closing and US$100,000 is to be paid on the first anniversary of closing, and issuing the Vendor 600,000 shares and 600,000 share purchase warrants (the “Warrants”) entitling the holder to purchase an additional 600,000 shares of NV Gold at a price of CDN $0.40 for a period of two years. The expiry date of the Warrants will be subject to acceleration such that, should the volume weighted average price of the common shares in the capital of NV Gold exceed CDN $0.60 for twenty consecutive trading days, NV Gold may notify the Vendor in writing that the Warrants will expire 15 trading days from receipt of such notice unless exercised before such date. Closing of purchase will be subject to customary conditions precedent, including approval of the TSX Venture Exchange to the purchase, the Company being satisfied with its due diligence and the settlement of a binding agreement setting forth detailed terms of the purchase.
Under the LOI NV Gold has also agreed to appoint a director designated by the Vendor and include the Vendor’s nominee as a Board nominee for the following two annual general meetings and has agreed to give the Vendor rights to participate pro rata in further financings by NV Gold.
NV Gold is a newly listed gold copper exploration company with a proven management team and extensive connections to projects and financing.Mike Gustin, P.Eng. a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this release.
ON BEHALF OF THE BOARD OF DIRECTORS OF
NV Gold Corporation
“John Watson”, President
For further information, visit the website at www.nvgold.com or contact:
Caution Regarding Forward-Looking Statements – This news release contains certain forward-looking statements, including statements regarding a proposed acquisition by the Company and its terms and the mineral potential of the property, including a resource estimate. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include failure to settle a binding agreement regarding the acquisition, the Company being unsatisfied with its due diligence, the uncertainty of continuity of observed mineralization assumed in mineral resource estimates, particularly inferred resources, unsuccessful exploration results, changes in metal prices, changes in the availability of funding for mineral exploration and development, unanticipated changes in key management personnel and general economic conditions. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward-looking statements, oral or written, made by itself or on its behalf.
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 and accuracy of this release.