Corvus Gold Inc. (TSX:KOR, OTCQX:CORVF) announced that its wholly owned Alaskan subsidiary, Raven Gold Alaska Inc., has signed an agreement with Gold Reserve Inc. 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.
Corvus Gold CEO, Jeff Pontius, 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.
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