Nevgold holds the right to acquire the Limousine Butte and Cedar Wash projects in Nevada
Canada’s Silver Mountain Mines has signed a binding definitive merger agreement with Nevgold to create a new diversified mining exploration company.
In January, the two firms had entered into a letter of intent for the merger.
Under the terms of the merger agreement, Silver Mountain will acquire all the issued and outstanding common shares in the capital of Nevgold.
The transaction is expected to be completed in the second quarter of 2021.
Silver Mountain Mines director Steve Konopelky said: “The combination of the Silver Mountain Mines and Nevgold assets will add value for all shareholders and expand our assets across North America in well established mining camps.
“With the new leadership team, asset portfolio, and recapitalization plan, the company should be in a great position for success as the market for commodities continues to grow.”
Nevgold, a private British Columbia company, holds the right to acquire the Limousine Butte and Cedar Wash projects in Nevada from McEwen Mining.
The Limousine Butte project includes 821 unpatented mining claims on federal Bureau of Land Management (BLM) land. It covers an area of approximately 66.5km2.
Consisting of 239 unpatented mining claims on federal BLM land, the Cedar Wash is located in Lincoln County, Nevada and covers an area of approximately 19.3km2.
In December last year, Nevgold entered into an asset purchase and sale agreement with McEwen and certain of McEwen’s affiliates to acquire the properties.
Nevgold incoming president, CEO, and director Brandon Bonifacio said: “We are very excited to form a new North American focused precious metals exploration and development company with assets in Nevada and British Columbia that will attract a premium market valuation.”