Getchell Gold Corp. is delineating a potential Tier-1 gold resource at its flagship Fondaway Canyon gold project in Nevada, USA.
Getchell Gold to acquire Fondaway Canyon Gold Project. (Credit: Khusen Rustamov from Pixabay)
Getchell Gold Corp. is pleased to announce that the Company has delivered the final US$1.6 million earn-in option cash payment and US$1 million share issuance to acquire a 100% interest in the Fondaway Canyon and Dixie Comstock gold properties (the “Properties”) located in Nevada.
“The 100% acquisition of the Fondaway Canyon gold project is a major milestone event for the Company.” Bill Wagener, Chairman and CEO, commented. “The Fondaway Canyon project has been an eye opener from day one with every drill hole, over three drill campaigns in the Central area, contributing to a doubling of an already sizable historic resource. The closing of this acquisition serves as an immediate injection of significant value into the Company, and considering that the gold mineralization remains open in most directions, adds an indeterminate amount of future potential value waiting to be discovered.”
Under the terms of the option agreement (the “Option Agreement”) with Canagold Resources Ltd. (“Canagold”) executed on January 3, 2020, the Company had the option to acquire 100% of the Properties by paying Canagold a total of US$2 million in cash and US$2 million in the Company’s shares staged over 4 years. The Company also has to make work commitments totaling US$1.45 million over the four years, which have been fully satisfied, and grant a 2.0% net smelter return royalty (“NSR Royalty”) on each of the Properties to the Option or on the exercise of the Option.
In the preceding three anniversary payments, the Company has paid a total of US$400,000 in cash and issued US$1 million in the Company’s shares.
The Company has delivered to Canagold a US$1.6 million cash payment, issued 10,167,000 shares, and granted a 2.0% NSR Royalty to Canagold which satisfies the earn-in requirements, and the Company now owns 100% of the Properties. The Company has the option to repurchase half of the NSR Royalty (i.e., a 1% net smelter royalty) on each of the Fondaway Canyon property or the Dixie Comstock property for US$1 million.
Source: Company Press Release