Element79 Gold (CSE:ELEM) has signed an asset purchase agreement with vendor, Donald James McDowell, for the Gold Mountain Project in Nevada, US.
The Gold Mountain Project, comprising 34 unpatented mining claims, lies in Nevada’s Battle Mountain trend in Lander County.
As part of the transaction, through its subsidiary ELEM Battle Mountain, Element79 will pay US$137,485.85 ($212,725.59) in cash, as well as issue 100 million shares at C$0.02 per share to McDowell.
The vendor will also retain a 3% net smelter return royalty on all future mineral production from the project.
CEO James Tworek says this acquisition marks a “significant” step in advancing its strategic focus in Nevada.
“The Gold Mountain Project provides a drill-ready opportunity with strong geological fundamentals in one of the most prolific gold regions in the world,” Tworek says.
“Our technical team is preparing an exploration program for later this year to begin unlocking the value of this asset.”
The Gold Mountain Project presents “compelling” upside potential for Element79 with structurally controlled gold-silver-lead mineralisation and evidence of porphyry-style mineralisation within and around the project.
Element79 also owns the Elephant Project in Nevada, US. The project, covering 3,758 acres, is located a few kilometres away from historical mines such as the Fortitude and Copper Canyon mines.
Write to Aaliyah Rogan at Mining.com.au
Images: Element 79
