Eminent Gold Corp. (TSXV: EMNT) (OTCQB: EMGDF) (FSE: 7AB) (the “Company” or “Eminent”) is pleased to announce that it has exercised its option to acquire 100% ownership of the 168 optioned claims that it does not already own on the Hot Springs Range Project (“HSRP”), located in Humboldt County, Nevada. This achievement represents a defining step forward in the Company’s Nevada-focused gold exploration strategy, with HSRP reflecting strong geological parallels to the prolific 50-million-ounce Getchell Trend.
The Hot Springs Range Project in its entirety is comprised of 419 unpatented lode mining claims, covering approximately 3,500 hectares and approximately 15km across the Eden Valley.
Eminent has fulfilled all of its obligations under the terms of the March 2020 Option Agreement with Milliard Geological Consulting (the “Option Agreement”).
Key Terms of the Option Agreement:
Five-year Option Term: Eminent had up to five years to fulfill the terms of the agreement to acquire 100% interest in the property.
Cumulative Payments: The agreement required USD $136,140 in cash payments, the issuance of 1,650,000 common shares, and a final USD$1,500,000 payment, which may be satisfied by Eminent through the issue of common shares.
Net Smelter Royalty (NSR): The Optionor retains a 2% NSR, which Eminent may purchase in 0.1% increments for USD $100,000 each, up to a maximum of 1%.
Eminent made an annual share issuance of 500,000 shares, and elected to satisfy the final cash payment through the issue of 5,832,941 common shares. The final cash payment of USD$1,500,000 was deemed converted to Canadian dollars at an exchange rate of CDN$1.4015 for each US$1.00. The shares were issued at a deemed price of CDN$0.3604 per share. The shares issued are subject to a hold period in Canada until August 12, 2025.
Paul Sun, President and CEO of the Company commented:
“The acquisition of full ownership of the Hot Springs Range Project represents a pivotal milestone in advancing its early success and unlocking the immense potential we see in this venture. With multiple geological features identified as analogous to deposits within the prolific, parallel Getchell Gold Trend, the project holds significant promise for discovering a new Carlin-style deposit. The results from the first drill hole have validated our thesis, and with the second drill hole pending, ongoing drilling continues to strengthen our confidence in this opportunity.”
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