Vancouver, British Columbia – NV Gold Corporation (TSX-V: NVX) (the “Company”) announced today that it has received TSX Venture Exchange acceptance of the option agreement (the “Agreement”) with Evolving Gold Corp. (“EVG”) under which the Company has been granted an option to acquire a 100% interest in the Rattlesnake Hills Project (“Rattlesnake Hills” or the “Property”).
Rattlesnake Hills is located in Natrona County, Wyoming, USA. Recent drilling, since 2008, comprises 182 drill holes totalling 71,083m. Two deposits have thus far been identified: North Stock and Antelope Basin. North Stock is about 400m by 200m wide, trends north-northeast, and is open at depth and along strike. Mineralization has been drilled to as far as 500m below the surface. Mineralization at Antelope Basin has been identified in an area of 200m by 350m to a depth of 200m, trends northeast, and is open along strike. The Company engaged David Turner, M.Sc., P.Geo. to prepare a NI 43-101 compliant Technical Report that sets forth detailed information in respect of the Property and this Report has been filed with the Company’s documents on SEDAR at www.sedar.com and will be available on the Company’s website.
In order to exercise its option and acquire a 100% interest in Rattlesnake Hills, the Company must pay to EVG’s subsidiary, Rattlesnake Mining (Wyoming) Company (“EVG US”) US$3,500,000 and issue 3,000,000 common share purchase warrants of the Company (“Warrants”) and 1,000,000 common shares of the Company (“Shares”) in aggregate as follows:
(i) on execution of the Agreement, US$100,000 as a non-refundable deposit (the “Deposit”) and US$300,000 (the “Down Payment”) to EVG US’ counsel for forwarding to EVG US upon TSX Venture Exchange (“TSXV”) acceptance (both of which have been paid);
(ii) upon TSXV acceptance, US$100,000 and 1,000,000 Warrants, each such Warrant exercisable to acquire one Share at CDN$0.10 per Share for 36 months from the date of issue;
(iii) on or before August 1, 2014, US$200,000;
(iv) on or before September 15, 2014, 1,000,000 Warrants, each such Warrant exercisable to acquire one Share at CDN$0.10 per Share until September 15, 2016;
(v) on or before November 1, 2014, US$800,000;
(vi) on or before the first anniversary of TSXV acceptance, US$1,000,000 and 1,000,000 Warrants, each such Warrant exercisable to acquire Share at CDN$0.10 per Share for a period of 18 months from the date of issue; and
(vii) on or before the second anniversary of execution, US$1,000,000 and 1,000,000 Shares.
In connection with funding the option payments due under the Agreement, the Company sold 11,179,000 special warrants (the “Special Warrants”) on April 3, 2014. Each Special Warrant is automatically converted into a unit (a “SW Unit”) for no additional consideration upon receipt of TSXV acceptance of the Agreement. The SW Units will consist of one Share and one-half of one Warrant exercisable at CDN$0.10 per share until October 3, 2015.
On behalf of the Board of Directors,
(sgd.) “John E. Watson”
President and CEO
For further information, visit the Company’s website at www.nvgoldcorp.com or contact:
John E. Watson,
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the geological potential of the property or other properties to which it might be analogous and other future plans and objectives of the Company are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s plans or expectations include regulatory issues, market prices, availability of capital and financing, general economic, market or business conditions, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.