Nighthawk Agrees to Purchase Royalties Pertaining to Certain Regional Assets Within Its Indin Lake Gold Property
TORONTO, Jan. 15, 2020 /CNW/ - Nighthawk Gold Corp. ("Nighthawk" or the "Company") (TSX: NHK; OTCQX: MIMZD) is pleased to announce that it has entered into an agreement (the "Purchase Agreement") to purchase certain net smelter return ("NSR"), and net profit interest ("NPI"), royalties (collectively referred to as the "Royalties"), from two parties. The Royalties relate to certain claims within the Leta Arm Gold Project ("Leta Arm"), including the Lexindin showing ("Lexindin"), the Treasure Island Gold Project ("Treasure Island"), the Laurie Lake Showing ("Laurie Lake"), and the Barker-Vidie Showing ("Barker-Vidie").
Dr. Michael Byron, President and CEO commented, "We consolidated the Indin Lake gold camp, including all its historical gold mines, deposits, and showings, because we are convinced of its untapped potential. As we continue to advance our flagship Colomac Gold Project, alongside our high-priority regional targets, we are confident in our abilities to generate new discoveries.
We are pleased to be entering into the Purchase Agreement to purchase these Royalties at this time. With the highly prospective nature of our Indin Lake Gold Property, we believe the ability to purchase the Royalties removes future financial burdens for our shareholders."
Pursuant to the Purchase Agreement, the Company has agreed to pay an aggregate of $280,000 in cash plus issue 200,000 common shares to purchase the Royalties which consist of a 3% NSR relating to Leta Arm and 0.9% NPI on Lexindin, a 2% NSR on Treasure Island, a 2% NSR on Laurie-Lake and a 2% NSR on Barker-Vidie. The closing of the transaction is subject to the satisfaction of certain customary closing conditions, specified in the Purchase Agreement, and is expected to take place on or before March 31, 2020.
The common shares issued will be subject to a hold periods under applicable laws. The acquisition remains subject to the final approval of the Toronto Stock Exchange.
Nighthawk is a Canadian-based gold exploration company with 100% ownership of a district-scale land position within the Indin Lake Greenstone Belt, located approximately 200 km north of Yellowknife, Northwest Territories, Canada. Nighthawk is focused on advancing the Colomac Gold Project with a current inferred resource of 2.6 million ounces of gold (50.3 million tonnes at an average grade of 1.62 grams per tonne gold), as well as advancing its other regional gold deposits and showings within this largely underexplored Archean gold camp.
The Company has an experienced and dedicated team and is well funded to complete its goals and objectives over the next 12 months.
Dr. Michael J. Byron, Ph.D., P.Geo., President & Chief Executive Officer of Nighthawk, who is the "Qualified Person" as defined by NI 43-101 for this project, has reviewed and approved of the technical disclosure contained in this news release. Please refer to NI 43-101 technical report "Technical Report and mineral resource estimate update on the Colomac Property of the Indin Lake Project", dated June 13, 2018, as filed under the company's profile on www.sedar.com.
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information with respect to, the completion of the acquisition of the Royalties. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved".
Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Nighthawk to be materially different from those expressed or implied by such forward-looking information, including risks associated with the exploration, development and mining such as economic factors as they affect exploration, future commodity prices, changes in foreign exchange and interest rates, actual results of current exploration activities, government regulation, political or economic developments, environmental risks, permitting timelines, capital expenditures, operating or technical difficulties in connection with development activities, employee relations, the speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of reserves, contests over title to properties, and changes in project parameters as plans continue to be refined as well as those risk factors discussed in Nighthawk's annual information form for the year ended December 31, 2018, available on www.sedar.com. Although Nighthawk has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Nighthawk does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
SOURCE Nighthawk Gold Corp.