VANCOUVER, Jan. 13, 2016 /CNW/ - Corvus Gold Inc. ("Corvus"
or the "Company") - (TSX: KOR, OTCQX: CORVF) announces that its
wholly owned Alaskan subsidiary, Raven Gold Alaska Inc. ("Raven"),
has signed an agreement with Gold Reserve Inc. ("Gold Reserve") for
the sale of its LMS project in the Pogo Mining District,
Alaska. The project is being sold for cash and a retained net
smelter return ("NSR") royalty, with final closing pending TSX
Venture Exchange approval. Cash from the transaction will be used
to fund ongoing exploration and development of the North Bullfrog
project in Nevada.
The LMS royalty interest will augment those established in 2015
and continue to provide our shareholders with exposure to future
gold production at no cost as well as providing a funding stream
for our ongoing Nevada exploration
programs.
A summary of the sale transactions are listed below:
- Cash at closing: USD $350,000
(~CAD $490,000 @ USD/CAD 1.40 exchange rate).
- Corvus is granted a retained NSR royalty of 3% on precious
metals and 1% on base metals with a 1% buy down of the precious
metal royalty for USD $4M.
Jeff Pontius, Corvus' CEO,
stated: "The expansion of the Corvus Gold royalty portfolio is a
continuation of the Company's strategy of enhancing shareholder
exposure to future gold production while minimizing dilution and
cost risk associated with its non-core assets. Like our
earlier transactions, the partner is a key aspect of the deal and
with Gold Reserve, an emerging mine developer with a strong
financial base, we believe we have the right group to do the right
job. LMS is an exciting early stage development project with
good potential to expand, offering Corvus shareholders potential
for zero cost gold production in the future. The transaction
will also provide cash for Corvus' continuing exploration on its
new Nevada, high-grade,
gold-silver discovery at North Bullfrog. Corvus will continue
to look for favorable opportunities to build its royalty portfolio
while monetizing its non-core assets thus minimizing dilution while
providing shareholders with long-term, low-risk discovery and
production potential."
About Corvus Gold Inc.
Corvus Gold Inc. is a North American gold exploration company,
which is focused on advancing its 100% controlled Nevada, North Bullfrog project towards a
potential development decision. In addition, the Company
controls a number of other North American exploration properties
and royalties representing a spectrum of gold, silver and copper
projects.
On behalf of
Corvus Gold Inc.
(signed) Jeffrey A.
Pontius
Jeffrey A.
Pontius,
Chairman and Chief Executive Officer
Cautionary Note Regarding Forward-Looking
Statements
This press release contains forward-looking statements and
forward-looking information (collectively, "forward-looking
statements") within the meaning of applicable Canadian and US
securities legislation. All statements, other than statements
of historical fact, included herein including, without limitation,
statements regarding the use of cash from the transaction for
exploration at North Bullfrog, potential for the LMS project to
expand, potential no cost gold production for shareholders from the
LMS retained royalty, management continuing to look for
opportunities to build royalty portfolio and fund exploration
through the sale of non-core assets, anticipated content,
commencement and cost of exploration programs, anticipated
exploration program results, the discovery and delineation of
mineral deposits/resources/reserves, the potential for any mining
or production at North Bullfrog, the potential for the Company to
secure or receive any royalties in the future, business and
financing plans and business trends, are forward-looking
statements. Although the Company believes that such
statements are reasonable, it can give no assurance that such
expectations will prove to be correct. Forward-looking
statements are typically identified by words such as: believe,
expect, anticipate, intend, estimate, postulate and similar
expressions, or are those, which, by their nature, refer to future
events. The Company cautions investors that any
forward-looking statements by the Company are not guarantees of
future results or performance, and that actual results may differ
materially from those in forward looking statements as a result of
various factors, including, but not limited to, failure to receive
required regulatory approvals, variations in the nature, quality
and quantity of any mineral deposits that may be located,
variations in the market price of any mineral products the
Company may produce or plan to produce, the Company's inability to
obtain any necessary permits, consents or authorizations required
for its activities, the Company's inability to produce minerals
from its properties successfully or profitably, to continue its
projected growth, to raise the necessary capital or to be fully
able to implement its business strategies, and other risks and
uncertainties disclosed in the Company's latest interim
Management Discussion and Analysis and filed with certain
securities commissions in Canada. All of the Company's
Canadian public disclosure filings may be accessed via
www.sedar.com and readers are urged to review these
materials, including the technical reports filed with respect to
the Company's mineral properties.
Cautionary Note Regarding References to Resources and
Reserves
National Instrument 43 101 - Standards of Disclosure for
Mineral Projects ("NI 43-101") is a rule developed by the Canadian
Securities Administrators which establishes standards for all
public disclosure an issuer makes of scientific and technical
information concerning mineral projects. Unless otherwise
indicated, all resource estimates contained in or incorporated by
reference in this press release have been prepared in accordance
with NI 43-101 and the guidelines set out in the Canadian Institute
of Mining, Metallurgy and Petroleum (the "CIM") Standards on
Mineral Resource and Mineral Reserves, adopted by the CIM Council
on November 14, 2004 (the "CIM
Standards") as they may be amended from time to time by the
CIM.
United States shareholders
are cautioned that the requirements and terminology of NI 43-101
and the CIM Standards differ significantly from the requirements
and terminology of the SEC set forth in the SEC's Industry Guide 7
("SEC Industry Guide 7"). Accordingly, the Company's
disclosures regarding mineralization may not be comparable to
similar information disclosed by companies subject to SEC Industry
Guide 7. Without limiting the foregoing, while the terms
"mineral resources", "inferred mineral resources", "indicated
mineral resources" and "measured mineral resources" are recognized
and required by NI 43-101 and the CIM Standards, they are not
recognized by the SEC and are not permitted to be used in documents
filed with the SEC by companies subject to SEC Industry Guide
7. Mineral resources which are not mineral reserves do not
have demonstrated economic viability, and US investors are
cautioned not to assume that all or any part of a mineral resource
will ever be converted into reserves. Further, inferred
resources have a great amount of uncertainty as to their existence
and as to whether they can be mined legally or economically.
It cannot be assumed that all or any part of the inferred resources
will ever be upgraded to a higher resource category. Under
Canadian rules, estimates of inferred mineral resources may not
form the basis of a feasibility study or prefeasibility study,
except in rare cases. The SEC normally only permits issuers
to report mineralization that does not constitute SEC Industry
Guide 7 compliant "reserves" as in-place tonnage and grade without
reference to unit amounts. The term "contained ounces" is not
permitted under the rules of SEC Industry Guide 7. In
addition, the NI 43-101 and CIM Standards definition of a "reserve"
differs from the definition in SEC Industry Guide 7. In SEC
Industry Guide 7, a mineral reserve is defined as a part of a
mineral deposit which could be economically and legally extracted
or produced at the time the mineral reserve determination is made,
and a "final" or "bankable" feasibility study is required to report
reserves, the three-year historical price is used in any reserve or
cash flow analysis of designated reserves and the primary
environmental analysis or report must be filed with the appropriate
governmental authority.
This press release is not, and is not to be construed in any
way as, an offer to buy or sell securities in the United States.
SOURCE Corvus Gold Inc.