TSX.V: ANE
VANCOUVER, Sept.10, 2014 /CNW/ - Altan Nevada Minerals Ltd. (TSX.V: ANE) ("Altan Nevada" or the "Company") is pleased to announce that it has entered into an Agreement with a wholly owned subsidiary of Gold Resource Corporation (NYSE MKT: GORO), a low-cost gold producer with operations in Mexico ("Gold Resource Corp"), on 178 out of 204 unpatented lode mining claims covering approximately 88.7% (3,550 acres) of Company's Radar Gold-Silver Project (the "Property" or "Radar") situated in Mineral and Nye Counties, Nevada, whereby Gold Resource Corp, subject to meeting certain annual payment and work expenditure requirements, has the option to purchase a 100% interest in the Property for $US 1,500,000, with Altan Nevada retaining a 3% Net Smelter Return royalty.
Evan Jones, Altan Nevada's President & CEO, stated: "We are delighted to have partnered with a well-resourced and low cost producer to advance Radar."
"As shareholders will be aware, the ability for junior explorers such as Altan Nevada to raise capital to fund a significant drilling program is prohibitively dilutive in the current market environment. As such, by entering into this agreement, our shareholders will be able to participate in the drilling of a project that we otherwise may not have been in a position to evaluate for some time."
"This is the second property that Altan Nevada has secured a partner to advance in the past twelve months. This independently validates our view that the company's exploration portfolio is compelling."
Radar
Radar is a high-sulfidation epithermal precious metals project located in the productive Walker Lane mineral belt in western Nevada. The project covers an area of approximately 4,070 acres directly adjacent to the past producing Paradise Peak gold-silver mine and approximately 2 km from the Paradise Peak mill, currently in care and maintenance. FMC Gold Company operated Paradise Peak from 1986 to 1993, producing 1.53 million ounces of gold and 40.7 million ounces of silver from several open pits. The ore deposit was a Miocene high-sulfidation epithermal gold-silver system hosted by silicified ash-flow tuff.
Altan Nevada has spent over $US 1.1 million in exploration at the Property since 2006 including detailed geologic mapping, geochemistry, geophysics and first-pass drilling. Mineralized structures at Radar are prospective hosts for high-grade vein systems similar to those historically mined in the Goldfield district, located in the Walker Lane approximately 132 km southeast of Radar. The Goldfield district is a classic high-sulfidation epithermal vein system with bonanza gold grades over 600 g/t. NW- and NNW-striking structural zones at Radar with strong alteration and gold- pathfinder element anomalies (including Ag, As, and Hg) are compelling targets for this style of mineralization.
Brion Theriault, Altan Nevada's Exploration Manager, stated "We are very excited to be bringing Gold Resource Corporation in as our partner at Radar. They have proven expertise in epithermal systems evident from their success in discovering and delineating high-grade veins in Mexico. We look forward to working with their geologic staff in formulating an ambitious exploration program."
The Agreement
Under the terms of the Agreement, dated September 8th, 2014 (the "Effective Date"), Gold Resource Corp shall make the following payments:
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Date
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Amount
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On the Effective Date
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$50,000
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First anniversary of the Effective Date
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$100,000
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Second anniversary of the Effective Date
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$150,000
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Third anniversary of the Effective Date
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$200,000
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Fourth anniversary and each subsequent anniversary of the Effective Date of the Effective Date
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$250,000
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In addition, in order to maintain the Agreement in good standing, Gold Resource Corp shall meet work commitments within the one year period following the Effective Date and each anniversary of the Effective Date in the minimum amount of $250,000.
At any time during the term of the Agreement, the Property can be purchased, at the election of Gold Resource Corporation, for a one-time payment of $1,500,000. Altan Nevada then becomes entitled to receive a royalty equal to 3% of the Net Smelter Returns ("NSR") from the production of minerals on the Property, which can be reduced to a 2% NSR royalty by way of a one-time payment by Gold Resource Corporation of $1,000,000.
About Gold Resource Corporation
Gold Resource Corporation is a mining company focused on production and pursuing development of gold and silver projects that feature low operating costs and produce high returns on capital. The Company has: a 100% interest in six potential high-grade gold and silver properties in Mexico's southern state of Oaxaca; a demonstrated ability to fast track development; and is capitalized at over $300 million.
About Altan Nevada
Altan Nevada is a leading exploration innovator focused on the discovery of large-scale ore systems in under-explored districts of Nevada, USA. The Company's holdings in Nevada currently total more than 15,002 hectares. Projects include two potential district-scale extensions to the north Carlin Gold Trend, three Yerington District copper-gold targets and three large-scale gold alteration systems along the Walker Lane lineament in central Nevada.
Competent Person Statement
Altan Nevada's Exploration Director, Brion Theriault, a Certified Professional Geologist (AIPG) and a Qualified Person as defined by National Instrument 43-101, has reviewed the preparation of the scientific and technical information in this press release in respect to the Property.
On behalf of Altan Nevada Minerals Limited,
"Evan Jones"
Evan Jones, President & CEO
This press release may contain forward looking statements including those describing Altan Nevada's future plans and the expectations of management that a stated result or condition will occur. Any statement addressing future events or conditions necessarily involves inherent risk and uncertainty. Actual results can differ materially from those anticipated by management at the time of writing due to many factors, the majority of which are beyond the control of Altan Nevada and its management.
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.
SOURCE Altan Nevada Minerals Limited
Image with caption: "Figure 1 - Aerial photo of Radar property, showing Paradise Peak mine pits in foreground. (CNW Group/Altan Nevada Minerals Limited)". Image available at: http://photos.newswire.ca/images/download/20140910_C1904_PHOTO_EN_5489.jpg
Evan Jones, Altan Nevada Minerals Limited, Tel: +1 604 495 8374, Email: info@altnev.com, Web: www.altnev.comCopyright CNW Group 2014