Metalla has announced the purchase (detailed below) of one half of the 3% gross overriding royalty (GOR) currently held by
Valuing GORs is a complicated business made easier in this instance by the straightforward nature of the purchase price for IRC; thus prorating the
On
IRC is a privately held Nevada corporation which, upon closing of the Metalla transaction, will hold a 1.5% GOR over NuLegacy's Red Hill property located on trend to the southeast of the Cortez operations and Goldrush project. IRC also holds a 0.5% gross overriding royalty on the Anglo/Zeke claims block located immediately northwest of and adjacent to NuLegacy's Red Hill property and owned by
About
I The similarity and proximity of these deposits in the Cortez Trend is not necessarily indicative of the gold mineralization in NuLegacy's Red Hill Property.
II As extracted from Barrick's Q4-2013 and Q1-2014 reports. As reported by Barrick, the Goldrush resource contains 8,557,000 indicated ounces of gold within 25.78 million tonnes grading 10.57 g/t and 1,650,000 inferred ounces within 5.6 million tonnes grading 9.0 g/t.
Contact:
Tel: +1 (604) 639-3640
Email: albert@nuggold.com
Dr.
Required Disclaimer: Metalla's proposed purchase price for IRC is not necessarily indicative of and may bear no relation to the actual value of the Red Hill property or the market value of NuLegacy's shares. There are no known NI 43-101 resources or reserves in the Red Hill Property and any proposed exploration programs are exploratory searches for commercial bodies of ore.
Cautionary Statement on Forward-Looking Information: This news release contains forward-looking information and statements under applicable securities laws, which information and/or statements relate to future events or future performance (including, but not limited to, the potential value and prospective nature of the Red Hill Property and proposed future exploration and drilling programs thereon) and reflect management's current expectations and assumptions. Such forward-looking information and statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that such forward-looking information and statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected including, but not limited to, actual results of exploration activities, unanticipated geological, stratigraphic and structural formations, environmental risks, operating risks, accidents, labor issues, delays in obtaining governmental approvals and permits, the availability of financing, market conditions, future prices for gold, changes in personnel and other risks in the mining industry. There are no known resources or reserves in the Red Hill Property, any proposed exploration programs are exploratory searches for commercial bodies of ore and the presence of gold resources on properties adjacent or near the Red Hill Property including Goldrush is not necessarily indicative of the gold mineralization on the Red Hill Property. There is also uncertainty about the spread of the COVID-19 virus and the impact it will have on the Company's operations, personnel, supply chains, ability to procure exploration equipment, contractors and other personnel on a timely basis or at all and economic activity in general. All the forward-looking information and statements made in this news release are qualified by these cautionary statements and those in our continuous disclosure filings available on SEDAR at www.sedar.com. The forward-looking information and statements in this news release are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required by applicable law.
As part of a reorganization of the estate of IRC's late founder, IRC will dividend out the other half of the 3% GOR (i.e. 1 1/2% GOR) to its existing shareholders prior to closing of the Metalla transaction.
This valuation assumes that a 1% GOR interest in the Red Hill property is equivalent to a 1% GOR interest in the Anglo/Zeke claims and makes no adjustment for any differences in the nature, type, quantity, grade and/or metal content, if any, of minerals situated on the Red Hill property and Anglo/Zeke claims. This valuation also attributes no value to the reversionary rights held by IRC. These assumptions are neither promises nor guarantees, may be inaccurate and are subject to risks and uncertainties that may cause actual results to differ materially from those expected.
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