Oct 30 2010
NV Gold Corporation ("NV Gold") (TSX VENTURE:NVX) has announced that it has finalized the mining lease agreement for a 100% interest, subject to a 3 % NSR royalty, of the Roberts Gold property, located 28 miles NW of Eureka, Eureka County, Nevada.
The Roberts Gold property lies contiguous to and north of NV Gold's Afgan-Kobeh property where the Company is currently completing a 2,500 metre 20-25 hole RC drill program with a focus on expanding the NI 43-101 compliant gold resource of 50,000 ounces Indicated (1.85 million tons @ 0.027 oz Au/ton (0.926 g Au/ton)) and 34,000 ounces Inferred1 (1.29 million tons @ 0.026 oz Au /ton (0.891 g Au/ton)). Work to date indicates that the Afgan-Kobeh is a Carlin-type gold deposit that remains open to expansion in several areas.
The Roberts Gold property comprises an aggregate of 104 unpatented claims covering approximately 2,080 acres. Further to its news release of October 6, 2010, it has issued 250,000 units of NV Gold (the "Units") to terminate certain area of interest obligations to a third party and, as a result, the mining lease agreement for the Roberts Gold property is now in effect.
Under the mining lease agreement, NV Gold has leased the Roberts Gold property, subject to NV Gold paying advance royalty payments of US$10,000 upon the lease agreement becoming effective, a further US$10,000 six months thereafter, US$20,000 on each of the next five anniversary dates of the effective date of the lease agreement, and US$30,000 on each such anniversary date thereafter. NV Gold is responsible for all property maintenance obligations and has granted the lessor a 3% NSR. NV Gold has the right to purchase 25% of the royalty at any time for US$1,000,000 and a further 25% for US$2,000,000 at any time.
Each of the Units issued by NV Gold comprises one common share and one warrant to purchase an additional common share (a "Warrant") at a price of CDN$0.40 per share for a period of two years. The expiry date of each Warrant is subject to acceleration such that, should the volume weighted average price of the common shares the Company exceed CDN$0.60 for twenty consecutive trading days, NV Gold may notify the holder in writing that the Warrants will expire 15 trading days from receipt of such notice unless exercised by the holder before such date. The common shares and the warrants making up the Units and the common shares issuable upon exercise of the Warrants are subject to a hold period expiring on February 27, 2011.
Source: NV Gold Corporation