Amends Option to Purchase Coronado VMS Property in Nevada VANCOUVER, BC, Jan. 31, 2022 /CNW/ - Nevada Sunrise Gold Corporation ("Nevada Sunrise" or the "Company") (TSXV: NEV) is pleased to announce that it has negotiated an amendment to the terms of an option agreement whereby the Company has the right 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. A letter of intent for the Coronado option agreement was first announced by the Company on June 7, 2018, and a definitive agreement was announced on September 28, 2018.
Details of the Coronado Amended Option Agreement Terms
Nevada Sunrise retains the right to acquire a 100% interest in Coronado, subject to a 2.0% net smelter returns royalty ("NSR"), with certain buydown provisions, in consideration for the amended 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
Payments | Share
Payments | Minimum
Exploration
Expenditures |
| Within 5 business days of TSXV
acceptance of the Agreement | $30,000
(paid) | 200,000
(paid) | $50,000
(Incurred) |
| On or before 1st anniversary
of TSXV acceptance of the Agreement | $35,000
(paid) | 300,000
(paid) | $100,000
(incurred) |
| On or before 2nd anniversary
of TSXV acceptance of the Agreement | $40,000
(paid) | 400,000
(paid) | $150,000
(Incurred) |
| On or before 3rd anniversary
of TSXV acceptance of the Agreement | $50,000
(pending) | 500,000
(pending) | $300,000
(pending) |
| On or before 4th anniversary
of TSXV acceptance of the Agreement | $50,000
(amended) | 500,000
(amended) | $300,000
(amended) |
| On or before 5th anniversary
of TSXV acceptance of the Agreement | $50,000
(amended) | 500,000
(amended) | $300,000
(amended) |
| On or before 6th anniversary
of TSXV acceptance of the Agreement | $50,000
(amended) | 500,000
(amended) | $300,000
(amended) |
| On or before 7th anniversary
of TSXV acceptance of the Agreement | $50,000
(amended) | 500,000
(amended) | $300,000
(amended) |
| On or before 8th anniversary
of TSXV acceptance of the Agreement
(subject to the Company's completion of a
pre-feasibility study) | $1,050,000
(amended) | 600,000
(amended) | n/a |
| Totals: | $1,405,000 | 4,000,000 | $1,800,000 |
Nevada Sunrise retains 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. On the 8th anniversary payment due date, and if a pre-feasibility study has been completed, and 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 $1,050,000 will be increased to $1,300,000.
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.
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, copper, cobalt and lithium exploration projects located in the State of Nevada, USA.
The Company's key gold asset is a 20.01% interest in a joint venture with New Placer Dome Gold Corp. (TSXV: NGLD) at the Kinsley Mountain Gold Project ("Kinsley Mountain") near Wendover.
Nevada Sunrise has the right to earn a 100% interest in the Coronado VMS Project, located approximately 48 kilometers (30 miles) southeast of Winnemucca. The Company owns a 15% interest in the historic Lovelock Cobalt Mine and the Treasure Box copper properties, each located approximately 150 kilometers (100 miles) east of Reno, with Global Energy Metals Corp. (TSXV: GEMC) holding an 85% participating interest.
Nevada Sunrise owns 100% interests in the Jackson Wash and Gemini lithium projects, both of which are located in Esmeralda County. The Company owns Nevada water right Permit 86863, located in the Lida Valley basin, near Lida, Nevada.
The amending agreement for Coronado is subject to acceptance by the TSXV. For more information about Coronado, including maps and photos, click here.