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Golden Independence Mining Corp. (CSE: IGLD) (OTCQB: GIDMF) (FSE: 6NN) (the "Company") is pleased to announce it has formed the Joint Venture with Americas Gold Exploration Inc. ("AGEI") to advance the Independence project located approximately twenty-five miles south of the town of Battle Mountain, Nevada.
The Company entered into an option agreement on August 28, 2020 with AGEI to acquire an initial 51% interest in the Independence project subject to the following requirements:
- Staged cash payments to the underlying owner, from whom AGEI had an option to acquire 100% of the Independence project subject to a 2% NSR, totaling US$4.3 million prior to December 31, 2021;
- Staged work expenditures totaling US$3 million on the Independence project prior to December 31, 2021; and
- Payment of 500,000 shares of Golden Independence and US$50,000 cash to AGEI within 30 days of signing the option agreement.
As part of the work program undertaken since entering in an option agreement on the Independence project, the Company completed a 36 hole RC drill program which, coupled with the 56 RC holes undertaken by previous operators, culminated in a maiden NI 43-101 compliant near surface resource for the Independence project of 537,300 ounces of gold and 8.1 million ounces of silver in the Measured & Indicated categories as well 147,300 ounces of gold and 1.2 million ounces of silver in the Inferred category. This near surface resource, including additional results from a subsequent 12 hole RC drill program, forms the basis for an upcoming Preliminary Economic Assessment on the Independence project anticipated before year end 2021. An additional 796,200 ounces of gold in the Inferred category makes up the underground portion of the current NI 43-101 compliant resource at the Independence project.
Joint Venture Terms
Under the terms of the Joint Venture;
- Golden Independence has an initial 51% interest in the Independence project while AGEI holds an initial 49% interest.
- Golden Independence is the operator and is entitled to a 10% operator fee until a production decision is made on the Independence project.
- Both parties must contribute to funding further development at the Independence project on a pro-rata basis or have their interest diluted as per the standard formula outlined by the Rocky Mountain Mineral Law Foundation.
- Should either party of the Joint Venture be diluted to a 15% interest that interest will be converted into a 2% NSR on the Independence project of which half (ie. 1%) can be repurchased for US$4,000,000.
"We are delighted to have formed the Joint Venture for the Independence project," stated Golden Independence CEO Christos Doulis. "With our earn-in complete, we look forward to working with our partner, AGEI, to advance the Independence project towards a production decision," he concluded.
"The execution of the Joint Venture Agreement is the result of a strong team effort that has rapidly advanced the Independence project," added AGEI President Don McDowell. "We look forward to continuing work with Golden Independence as we advance development of the Independence project towards production," he concluded.
About Golden Independence Mining Corp.
Golden Independence Mining Corp. is an exploration company currently focused on exploring the advanced-stage Independence project located adjacent to Nevada Gold Mine's Phoenix-Fortitude mine in the Battle Mountain-Cortez Trend of Nevada. The Independence project hosts an M&I resource of 537,300 ounces of gold and an Inferred resource of 943,500 ounces of gold with a substantial silver credit. The Company is actively advancing the near-surface resource towards a production decision with a PEA anticipated in late 2021.
FOR FURTHER INFORMATION PLEASE CONTACT:
Christos Doulis, Chief Executive Officer
Telephone: 1.647.924.1083 Email: christos@goldenindependence.co
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/107362
