Corvus Gold Establishes Royalty Portfolio for Non-Core Assets in Alaska

Corvus Gold Inc. (TSX:KOR,OTCQX:CORVF) reported that its wholly owned Alaskan subsidiary, Raven Gold Alaska Inc., signed an agreement with Millrock Resources Inc. on the West Pogo and Goodpaster database projects in Alaska. These projects were non-core assets to Corvus. The ownership position was sold for cash and Corvus retained net smelter return royalties.
As quoted in the press release:

The royalty interest will provide the initial assets for a new portfolio developed to provide potential future gold production interest to the Company.
A summary of the sale transactions are listed below:

• Two projects included are the West Pogo project and the Goodpaster database.
• Total cash component for the two assets totals USD $120,000.
• For the West Pogo project, Corvus retained NSR royalty of 3% on precious metals and 1% on base metals with 1% of the precious metal royalty buy down for USD $2M and a further 1% for an additional USD $5M.
• For the Goodpaster database, Corvus retained NSR royalty of 1% on all new claims acquired within the defined Area Of Interest (AOI) which totals some 1,500 square kilometres covering the largest gold producing District in Alaska. One half of the royalty can be purchased for USD $2M.

Additionally, Corvus has granted Millrock an exclusive right to enter into an option agreement for the purchase of its LMS project also in the Goodpaster Mining District of Alaska until September 1, 2015 (summary below):

• Total cash component for the asset will total USD $775,000 over 5 years.
• Corvus retained NSR royalty of 3% on precious metals and 1% on base metals with 1% of the precious metal royalty buy down for USD $4M.

Corvus Gold CEO, Jeff Pontius, said:

The creation of a Corvus royalty portfolio signals an exciting value addition for our shareholders by not only providing immediate cash to the Company but also adding the potential for exposure to new discovery and production. A key aspect of this strategy is to establish a partnership with quality exploration groups like Millrock that have adequate funding and partnerships to make discoveries and bring them to account. Although exciting exploration opportunities, the Alaskan projects are non-core assets for Corvus as we devote our full attention to the growing 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 it non-core assets thus minimize dilution and provide long-term, low-risk discovery and production potential.”

Click here for the full Corvus Gold Inc. (TSX:KOR,OTCQX:CORVF) press release.
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