Getchell Gold approves early Fondaway option payment
2020-12-11 11:24 ET - News Release
Mr. William Wagener reports
GETCHELL GOLD CORP. APPROVES EARLY OPTION PAYMENT ON THE FONDAWAY CANYON GOLD PROJECT
Getchell Gold Corp.'s board of directors has approved the first anniversary payment required under the definitive option agreement to acquire 100 per cent of the Fondaway Canyon gold project located in Churchill county, Nevada.
"The commitment to meet the first anniversary option agreement obligations prior to receipt of drill results reflects our inherent confidence in the Fondaway Canyon gold project," stated Mike Sieb, president of Getchell Gold.
Fondaway Canyon option
The definitive option agreement to acquire 100 per cent of the Fondaway Canyon and Dixie Comstock projects was executed on Jan. 3, 2020. Under the terms of the agreement, Getchell can acquire the projects at any time on or before the fourth anniversary of the agreement by paying Canarc Resources Corp. a total of $2-million (U.S.) in cash, issuing $2-million (U.S.) in Getchell shares, completing $1.45-million (U.S.) in exploration expenditures and granting Canarc a 2-per-cent net smelter return royalty in each of the projects. One percentage point of the net smelter return royalty can be bought out for $1-million (U.S.) on each project (refer to the company's news release dated Jan. 7, 2020, for further details).
The company's board of directors has approved the first anniversary cash payment of $100,000 (U.S.) and issuance of $200,000 (U.S.) in shares of the company in advance of the anniversary date. The expenditures incurred during the recently completed drill program at Fondaway Canyon (refer to the company's news release dated Nov. 13, 2020, for further details) have far exceeded the first anniversary exploration expenditure requirement and ensures the option to acquire the Fondaway Canyon gold project remains in good standing through 2021.
Fondaway Canyon update
The company has yet to receive assay results from the recently completed six-hole drill program at Fondaway Canyon. The analytical laboratory has reported a backlog in sample processing related to the increased exploration activity in Nevada triggered by a strong gold market and staffing challenges at the analytical lab associated with COVID-19.
The company does not expect to release drill results until early January, 2021.
Options
The company has awarded incentive stock options pursuant to its stock option plan to various directors, officers and consultants of the company to purchase up to an aggregate of 850,000 common shares of the company. The stock options are exercisable at a price of 35 cents per share and expire five years from the date of grant.
About Getchell Gold Corp.
The company is a Nevada-focused gold and copper exploration company trading on the Canadian Securities Exchange under the symbol GTCH and on the OTCQB under the symbol GGLDF. Getchell Gold is primarily directing its efforts on its most advanced-stage asset, Fondaway Canyon, a past gold producer with a significant in-the-ground historic resource estimate. Complementing Getchell's asset portfolio is Dixie Comstock, a past gold producer with a historic resource, and two earlier-stage exploration projects: the Star project and Hot Springs Peak. Getchell has the option to acquire 100 per cent of the Fondaway Canyon and Dixie Comstock properties in Churchill county, Nevada.
The company reiterates that its field activities to advance its assets have not been impacted by the COVID-19 coronavirus. The company continues to monitor the situation and is in compliance with all government guidelines.
We seek Safe Harbor.