ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
Exploration Lease with Option to Purchase Agreement
On June 4, 2021, Nevada Canyon Gold Corp. ("NCG") entered into Exploration Lease
with Option to Purchase Agreement (the "Agreement") with Belshazzar Holdings,
L.L.C., ("BH") a Nevada limited liability Corporation on the Belshazzar
Property, consisting of 10 unpatented lode mining claims and 7 unpatented placer
mineral claim totaling 200 acres, within Quartzburg mining district, in Boise
County, Idaho (the "Property").
The term of the Agreement commences on June 4, 2021, and continues for ten (10)
years, subject to NCG's right to extend the Agreement for two (2) additional
terms of ten (10) years each, and subject to NCG's option to purchase the
Property.
Full consideration of the Agreement consists of the following: i.) an initial
cash payment of $20,000 to be paid within 90 days from the execution of the
Agreement on June 4, 2021 (the "effective date"), and ii.) annual payments of
$20,000 to be paid on the anniversary of the Effective Date while the Agreement
remains in effect. NCG has the exclusive option and right to acquire 100%
ownership of the Property (the "Purchase Option"). To exercise the Purchase
Option, NCG will be required to pay Eight Hundred Thousand Dollars ($800,000)
(the "Purchase Price"). The Purchase Price can be paid in either cash and/or
equity of NCG, or a combination thereof, at the election of BH. The annual
payments paid by NCG to BH, shall not be applied or credited against the
Purchase Price. The Belshazzar Property is subject to an 1% Gross Returns
Royalty payable to the property owner, from the Commencement of Commercial
Production subject to certain terms.
A copy of the Exploration Lease with Option to Purchase Agreement dated June 4,
2021 is attached as Exhibit 10.07 hereto.
ITEM 7.01 REGULATION FD DISCLOSURE
On June 4, 2021, the Company issued a news release announcing it had entered
into an Exploration Lease with Option to Purchase Agreement on the Belshazzar
Property, located in Boise County, Idaho, further described in Item 1.01 of this
Form 8-K. A copy of the news release is attached as Exhibit 99.1 hereto.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
Exhibit No. Description
10.07 Exploration Lease with Option to Purchase Agreement, dated June 4,
2021
99.01 News Release dated June 4, 2021
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