Gold79 issues shares for Jefferson Canyon anniversary payment
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Ottawa, Ontario – (Newsfile Corp. – May 28, 2021) – Gold79 Mines Ltd. (TSXV: AUU) (“Gold79” or the “Company”) announces its intention to issue 351,337 common shares of the Company at a value of C $ 0.086 per common share in connection with the second anniversary payment of US $ 25,000 due under the Jefferson Canyon, Nevada Real Estate Option Agreement (the “Agreement”). Deemed value is determined by the 20-day volume weighted average price preceding this announcement. The issued ordinary shares will have a statutory holding period of four months and one day from the date of issue. This equity debt transaction remains subject to the approval of the TSX Venture Exchange.
Jefferson Canyon Option Agreement Details
Under the terms of the agreement, Gold79 may acquire a 100% interest in the Jefferson Canyon Project from Thorsen-Fordyce Merchant Capital Inc. (“Thorsen”) and TF Minerals (USA) Inc. (together the “TF Parties”) by making the remaining six annual payments valued at US $ 25,000 from May 31, 2021 to 2026 which may be paid in common stock and / or cash at the option of the Company; and a cash payment by May 31, 2027 of US $ 200,000. The company has fulfilled the US $ 100,000 commitment required under the agreement.
In addition, 29 claims forming part of the Jefferson Canyon Project are the subject of an underlying option agreement, initiated in September 2015, between Thorsen and an individual claim holder (the “Underlying Contract”) whereby Thorsen has the right to acquire a 100% interest in these claims. As part of the agreement, the company assumed all obligations under the underlying agreement. The underlying agreement requires annual advance royalty payments by September 14, 2017 to 2029, with payments totaling US $ 425,000, of which US $ 395,000 remains. In 2021, the payment is US $ 20,000 and increases by $ 5,000 per year until 2026, and is followed by four annual payments of US $ 50,000 for 2026 to 2030. Option to earn 100% interest in the 29 Claims (“Underlying Claims”) may be exercised at any time during its term, until March 14, 2032, upon payment of a purchase price of US $ 500,000. All royalty prepayments and the purchase price are deductible from future net smelter return royalties payable.
In addition, the 28 claims staked by the TF parties are subject to a 3% net smelter return (“NSR”) and the underlying 29 claims are also subject to a 3% NSR. Each of these NSR bonds is subject to separate redemption provisions whereby up to 2% of each NSR may be purchased by the Company for US $ 1,000,000 for each 1%.
About Gold79 Mines Ltd.
Gold79 Mines Ltd. is a TSX Venture listed company specializing in building ounces in the Southwestern United States. Gold79 has a 100% call option to purchase agreements on three gold projects: the Jefferson Canyon Gold Project and the Tip Top Gold Project, both located in Nevada, United States, and the Gold Chain Project located in Arizona. , in the USA. In addition, Gold79 owns two projects with a minority stake, namely a 37.1% stake in the Greyhound project, Nunavut, Canada under the direction of JV by Agnico Eagle Mines Limited and a 20% stake in the Taviche project in Oaxaca. , in Mexico, now under option on Fortuna Silver Mines Inc.
This press release may contain forward-looking statements which are made as of the date hereof and are based on current expectations, forecasts and assumptions that involve risks and uncertainties associated with our business, including any private placement financing, uncertainty as to whether further exploration will result. in the target (s) defined as a mineral resource, capital expenditures, operating costs, mineral resources, recovery rates, grades and prices, estimated targets, expansion and growth of the business and operations, plans and references to the future success of the company with its business and the economic environment in which the business operates. All such statements are made in accordance with the “safe harbor” provisions of applicable Canadian securities legislation and are intended to be forward-looking statements. All statements contained in this document which are statements of historical fact can be considered as forward-looking statements. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. We caution readers of this press release not to place undue reliance on our forward-looking statements, as a number of factors could cause actual results or conditions to differ materially from current expectations. Please refer to the risks set out in the Company’s most recent annual MD&A and in the Company’s continuous disclosure documents which can be found on SEDAR at www.sedar.com. Gold79 does not intend and disclaims any obligation, except as required by law, to update or revise forward-looking statements whether as a result of new information, future events or otherwise.
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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/85734