Nighthawk is a Canadian-based gold exploration company with 100% ownership of a district-scale land position within the Indin Lake Greenstone Belt, located approximately 200 km north of Yellowknife, Northwest Territories, Canada
Nighthawk Gold Corp. (“Nighthawk” or the “Company”) (TSX: NHK;OTCQX: MIMZD) is pleased to announce that it has entered into an agreement (the “Purchase Agreement”) to purchase certain net smelter return (“NSR”), and net profit interest (“NPI”), royalties (collectively referred to as the “Royalties”), from two parties. The Royalties relate to certain claims within the Leta Arm Gold Project (“Leta Arm”), including the Lexindin showing (“Lexindin”), the Treasure Island Gold Project (“Treasure Island”), the Laurie Lake Showing (“Laurie Lake”), and the Barker-Vidie Showing (“Barker-Vidie”).
Dr. Michael Byron, President and CEO commented, “We consolidated the Indin Lake gold camp, including all its historical gold mines, deposits, and showings, because we are convinced of its untapped potential. As we continue to advance our flagship Colomac Gold Project, alongside our high-priority regional targets, we are confident in our abilities to generate new discoveries.
We are pleased to be entering into the Purchase Agreement to purchase these Royalties at this time. With the highly prospective nature of our Indin Lake Gold Property, we believe the ability to purchase the Royalties removes future financial burdens for our shareholders.”
Pursuant to the Purchase Agreement, the Company has agreed to pay an aggregate of $280,000 in cash plus issue 200,000 common shares to purchase the Royalties which consist of a 3% NSR relating to Leta Arm and 0.9% NPI on Lexindin, a 2% NSR on Treasure Island, a 2% NSR on Laurie-Lake and a 2% NSR on Barker-Vidie. The closing of the transaction is subject to the satisfaction of certain customary closing conditions, specified in the Purchase Agreement, and is expected to take place on or before March 31, 2020.
The common shares issued will be subject to a hold periods under applicable laws. The acquisition remains subject to the final approval of the Toronto Stock Exchange.
Source: Company Press Release