NEVADA SUNRISE OPTIONS NEPTUNE LITHIUM PROPERTY IN NEVADA
Nevada Sunrise Gold Corp. has entered into an interim agreement with Resolve Ventures Inc., for Resolve to earn up to a 50-per-cent working interest in the Neptune lithium property. Neptune consists of a block of 316 unpatented placer claims totalling approximately 6,320 acres (2,557 hectares) located in the Clayton Valley, Esmeralda county, Nevada, approximately 10 miles (15 kilometres) south of the Silver Peak lithium mine, operated by Albemarle Corp.
Neptune option agreement
The agreement with Nevada Sunrise grants Resolve the right to earn up to a 50-per-cent interest in the company's interest in Neptune. Nevada Sunrise holds an option to acquire a 100-per-cent interest in the property pursuant to an option agreement with the property owners. Neptune is subject to a 3-per-cent gross overriding royalty in favour of the current owners of the property. The parties expect to negotiate a more comprehensive definitive agreement, which will supersede the agreement.
Option for Resolve to earn a 25-per-cent interest
Under the terms of the agreement, Resolve can earn an initial 25-per-cent interest in Neptune by making cash and share payments to Nevada Sunrise and financing exploration expenditures on the following schedule:
Nevada Sunrise will act as operator and will charge a 10-per-cent operatorship fee on exploration expenditures. All claim maintenance payments due by Sept. 1, 2016, would be split 75/25 between the two parties.
In order to proceed with its second option, Resolve must provide notice to Nevada Sunrise 60 days before the first anniversary of TSX-V acceptance of the agreement. If Resolve does not elect to proceed with the second option, a standard dilution formula will apply to its 25-per-cent interest should additional expenditures be incurred.
Option for Resolve to earn a 50-per-cent interest
Upon an election to proceed to the second option, Resolve can earn an additional 25-per-cent interest in Neptune by making additional cash or share payments to Nevada Sunrise and financing exploration expenditures, as follows:
After completion of the exploration expenditures for the first and second years totalling $1-million and the payment of cash and shares as listed above, Resolve would earn a 50-per-cent working interest in Neptune and a joint venture would be formed.
In the event a joint venture is formed, Nevada Sunrise would be the operator of the joint venture and would be responsible for administrating all exploration activities, including drilling, geophysical surveys, geological consulting and claim maintenance fees according to usual business practice for a joint venture.
Nevada Sunrise has the right, under the terms of the royalty, to purchase 1.0 per cent of the royalty at any time before September, 2018, by paying the royalty holders $1-million (U.S.). Under the terms of the agreement, the parties have agreed that if the joint venture exercises the buy-down, it will be paid by both parties according to their respective participating interests.
Robert M. Allender, CPG, RG, SME, is the company's designated qualified person for this news release within the meaning of National Instrument 43-101. He has reviewed and approved the technical information contained herein.Back to Past News