Bravada Gold Announces Option-to-Purchase Agreement for South Lone Mountain Property

Bravada Gold Corporation (TSXV:BVA) announced a lease with option-to-purchase agreement with Goldspike Exploration Inc., for the South Lone Mountain property in Nevada. Under the agreement, Bravada Gold will receive escalating lease payments totalling US$329,200 in cash over a period of up to 10 years, during which exploration and development may be conducted. Goldspike will have the option to buy-down Bravada’s royalties to 1% NSR for base metals and 1.5% NSR for precious metals for a cash payment of US$3,000,000.

According to CEO Joe Kizis, “Goldspike’s control of adjacent MVT mineralization at the historic Lone Mountain Zinc mine makes them an ideal partner to further explore and develop the South Lone Mountain property.”

As quoted in the press release:

Bravada Gold Corporation (“Bravada” or the “Company”) has signed a lease with option-to-purchase agreement with Goldspike Exploration Inc. (“Goldspike”) for the Company’s South Lone Mountain property (the “Property”), located along the Battle Mountain-Eureka Gold trend in central Nevada. Goldspike controls the adjacent Lone Mountain Zinc project.

The agreement consists of escalating lease payments totalling US$329,200 in cash over a period of up to 10 years, during which exploration and development may be conducted. In addition, Bravada will receive 50,000 common shares upon TSX.V exchange approval and another 100,000 common shares should a NI-43-101 resource estimate for the combined properties include at least 10% of the reported tonnage attributable to the Property. All lease payments can be applied to the final purchase price of US$329,000, after which advanced minimum royalty payments become due annually in the amount of the cash equivalence of 50 ounces of gold. Upon production, Bravada will receive royalty payments of 1.5% NSR on production of base metals and 3.0% NSR on precious metals. Goldspike will have the option to buy-down Bravada’s royalties to 1% NSR for base metals and 1.5% NSR for precious metals for a cash payment of US$3,000,000. An underlying vendor also holds a royalty on the property, which is 1% NSR for all metals and can be reduced to 0.5% NSR for a cash payment of $3,000,000.

President Joe Kizis commented, “The South Lone Mountain property is not a core asset for Bravada; however, we recognize the property’s potential to host significant Mississippi-Valley-Type (MVT) zinc/lead/silver, as well as Carlin-type gold. Goldspike’s control of adjacent MVT mineralization at the historic Lone Mountain Zinc mine makes them an ideal partner to further explore and develop the South Lone Mountain property.”

Click here to read the Bravada Gold Corporation (TSXV:BVA) press release