TSXV: NEV
VANCOUVER, Sept. 28, 2016 /CNW/ - Nevada Sunrise Gold
Corporation ("Nevada Sunrise" or the "Company") (TSXV: NEV) today
announced that, further to its news release of August 29, 2016, it has entered into an agreement
(the "Amending Agreement") with Advantage Lithium Corp
("Advantage") (TSXV: AAL) and Resolve Ventures Inc. ("Resolve")
(TSXV: RSV) that amends its May 3,
2016 joint venture and option agreement with Resolve (the
"Resolve Agreement"). Pursuant to the Resolve Agreement,
Resolve had the right to earn up to a 50% working interest in the
Neptune lithium property ("Neptune", or the "Property") located in
the Clayton Valley, Nevada. Nevada
Sunrise holds an option to acquire a 100% interest in Neptune
pursuant to an underlying agreement with the owner of the Property
(the "Vendor"), subject to a 3% gross overriding royalty. For
further details on the Resolve Agreement, see Nevada Sunrise news
release dated May 4, 2016.
Neptune Option Amending Agreement
The Amending Agreement supersedes the Resolve Agreement between
Nevada Sunrise and Resolve. In May
2016, Resolve fulfilled the obligations of its initial 25%
earn-in for Neptune, and according to the Amending Agreement has
agreed to terminate its right to a second stage earn-in where
Resolve could have increased its interest to 50%. Nevada Sunrise
has granted, with the consent of Resolve, Advantage Lithium Corp.
("Advantage") the option (the "Neptune Option") to earn up to a 50%
interest in Neptune, with Nevada Sunrise retaining a 25% interest
and Resolve retaining its earned 25% interest. Upon Advantage
exercising its option to earn a 50% interest, a 3-way joint venture
will be formed, with Nevada Sunrise and Resolve each retaining a
25% interest.
Exercise of the Neptune Option by Advantage
To earn a 50% participating interest in Neptune, Advantage must
fulfill the following obligations:
(a)
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incur total
exploration expenditures of CDN$700,000, as follows:
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- a minimum of
CDN$100,000 before July 29, 2017;
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- a minimum of
CDN$300,000 before July 29, 2018; and
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- a minimum of
CDN$700,000 before July 29, 2019,
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(b)
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exercise its initial
option agreement with Nevada Sunrise for five lithium properties,
one of which is Neptune, by the initial option earn-in date
of July 29, 2018 (for further details of the Advantage transaction
see Nevada Sunrise news release dated June 20, 2016);
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(c)
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make annual common
share payments to the Vendor either by direct issuance of
Advantage's common shares, being of equal value to any Nevada
Sunrise common share payments due under the terms of the underlying
agreement, or by reimbursing Nevada Sunrise with Advantage common
shares should Nevada Sunrise issue its shares to the Vendor, at the
Vendor's option.
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Nevada Sunrise will act as manager of exploration during the
Advantage earn-in period and will charge a 10% management
fee. Expenditures incurred by Advantage in exercising the
Neptune Option will be credited towards expenditures Advantage must
make to acquire a 70% interest in the Jackson Wash, Clayton Northeast, and Aquarius properties (see
Nevada Sunrise news releases dated July 29,
2018 and August 29, 2016).
If the Amending Agreement is terminated prior to the Advantage
earn-in date, Resolve can resume its right to the second stage
option and regain the right to earn a 50% interest in Neptune,
subject to fulfilling certain conditions.
About Neptune
Neptune consists of a block of 316 unpatented placer claims
totaling approximately 6,320 acres (2,557 hectares) located in the
Clayton Valley, Esmeralda County,
Nevada, USA, approximately 10 miles (15 kilometres) south of
the Silver Peak lithium mine, operated by Albemarle Corp. (NYSE:
ALB).
Nevada Sunrise believes Neptune has the potential to host
lithium-bearing brines in subterranean aquifers beneath the Clayton
Valley floor. The Property was acquired after a review of
historical geophysical data and reports that indicated geologic
formations and structures exist at Neptune that are similar to
lithium-bearing brine deposit models present elsewhere in the
Clayton Valley.
In March 2016, Nevada Sunrise
completed 2 drill holes at Neptune totaling 3,220 feet (981 metres)
into the interpreted sub-basin and encountered sub-economic lithium
values in groundwater (see news release dated May 31, 2016). However, in hole N-2016-1, the
composited samples collected from the intersected sedimentary,
lacustrine strata contained lithium-bearing sediments that averaged
156 parts per million ("ppm") lithium over 215 feet (65.5 metres)
from 1285 feet (392.7 metres) to the end of hole at 1,500 feet
(457.2 metres), reaching a peak value of 217 ppm lithium from 1365
to 1385 feet. This type of sedimentary strata is interpreted as a
requisite host horizon for lithium-bearing brines as seen in the
northern Clayton Valley. A third hole up to 2,000 metres deep
is planned approximately 1 mile (1.6 kilometres) to the east of
hole N-2016-1 in an area interpreted from a 2016 geophysical survey
to be a potential trap where denser, lithium-bearing brines could
migrate and pool. If results from the proposed third hole warrant,
a drill pad and access road have been prepared for a fourth hole
location.
For further information on Neptune, including a technical report
dated February 29, 2016, see
"Projects – Nevada Lithium"
at: http://www.nevadasunrise.ca/projects/nevadalithium/
Robert M. Allender, Jr., CPG, RG,
SME is the Company's designated Qualified Person for this news
release within the meaning of National Instrument 43-101 and has
reviewed and approved the technical information contained
herein.
About Nevada Sunrise
Nevada Sunrise is a junior mineral exploration company with a
strong technical team based in Vancouver,
BC, Canada, that holds
interests in nine mineral exploration projects in the State of Nevada, USA. Nevada Sunrise began
acquisitions of Nevada lithium
properties in September 2015, which
include options to earn 100% interests in the Neptune and Clayton
Northeast projects, and a 100% interest in the Aquarius Project,
all located in the Clayton Valley area. The Company also holds
options to earn 100% interests in the Jackson Wash and Atlantis
projects, and has a 50% participating interest in the Gemini
project, each located in playas proximal to the Clayton Valley. The
Company has optioned five of Nevada lithium projects to Advantage Lithium
Corp., and a sixth, the Atlantis project, is currently under option
to American Lithium Corp. (TSXV: LI).
The Company's three key gold assets include a 21% interest in a
joint venture with Pilot Gold Inc. (TSX: PLG) at Kinsley Mountain
near Wendover, a 100% interest in
the Golden Arrow project near Tonopah, and a 100% interest in the Roulette
gold property in the southeastern Carlin trend near Ely, with each of the properties subject to
certain production royalties.
FORWARD LOOKING STATEMENTS
All statements in this release, other than statements of
historical fact, are "forward-looking information" with respect to
Nevada Sunrise Gold Corporation ("Nevada Sunrise") within the
meaning of applicable Canadian securities laws, including
statements that address future mineral production, reserve
potential, exploration drilling, the future price of lithium,
potential quantity and/or grade of minerals, potential size of a
mineralized zone, potential expansion of mineralization, the timing
and results of future resource estimates, or other study, proposed
exploration and development of our exploration properties and the
estimation of mineral resources. Forward-looking information is
often, but not always, identified by the use of words such as
"seek", "anticipate", "plan", "continue", "estimate", "expect",
"project", "predict", "potential", "targeting", "intends",
"believe", "potential", and similar expressions, or describes a
"goal", or variation of such words and phrases or state that
certain actions, events or results "may", "should", "could",
"would", "might" or "will" be taken, occur or be achieved. These
statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or
achievement of Nevada Sunrise to differ materially from those
anticipated in such forward-looking information.
Such factors include, among others, risks related to the
interpretation and actual results of historical exploration at the
Neptune property, reliance on technical information provided by
third parties on any of our exploration properties, including
access to historical information on the Neptune property, current
exploration and development activities; changes in project
parameters as plans continue to be refined; current economic
conditions; future prices of commodities; possible variations in
grade or recovery rates; failure of equipment or processes to
operate as anticipated; the failure of contracted parties to
perform; labor disputes and other risks of the mining industry;
delays in obtaining governmental approvals, financing or in the
completion of exploration, as well as those factors discussed in
the section entitled "Risk Factors" in the Company's Management
Discussion and Analysis for the Nine Months ended June 30, 2016, which is available under
Company's SEDAR profile at www.sedar.com.
Although Nevada Sunrise has attempted to identify important
factors that could cause actual actions, events or results to
differ materially from those described in forward-looking
information, there may be other factors that cause actions, events
or results not to be as anticipated, estimated or intended. There
can be no assurance that such information will prove to be accurate
as actual results and future events could differ materially from
those anticipated in such statements. Nevada Sunrise disclaims any
intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise. Accordingly, readers should not place undue reliance
on forward-looking information.
Forward-looking statements are made as of the date hereof and
accordingly are subject to change after such date. Except as
otherwise indicated by Nevada Sunrise, these statements do not
reflect the potential impact of any non-recurring or other special
items or of any dispositions, monetizations, mergers, acquisitions,
other business combinations or other transactions that may be
announced or that may occur after the date hereof. Forward-looking
statements are provided for the purpose of providing information
about management's current expectations and plans and allowing
investors and others to get a better understanding of our operating
environment. Nevada Sunrise does not undertake to update any
forward-looking statements that are included in this document,
except in accordance with applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of TSX Venture
Exchange) accepts responsibility for the adequacy of accuracy of
this release. The Securities of Nevada Sunrise Gold Corporation
have not been registered under the United States Securities Act of
1933, as amended, and may not be offered or sold within
the United States or to the
account or benefit of any U.S. person.
SOURCE Nevada Sunrise Gold Corporation