Bravada Signs Lease with Option-to-Purchase Agreement for its South Lone Mountain Property
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct 14, 2014) - Bravada Gold Corp. ("Bravada" or the "Company") (TSX VENTURE:BVA)(FRANKFURT:BRT) has signed a lease with option-to-purchase agreement with Goldspike Exploration Inc. ("Goldspike") for the Company's South Lone Mountain property (the "Property"), located along the Battle Mountain-Eureka Gold trend in central Nevada. Goldspike controls the adjacent Lone Mountain Zinc project.
The agreement consists of escalating lease payments totalling US$329,200 in cash over a period of up to 10 years, during which exploration and development may be conducted. In addition, Bravada will receive 50,000 common shares upon TSX.V exchange approval and another 100,000 common shares should a NI-43-101 resource estimate for the combined properties include at least 10% of the reported tonnage attributable to the Property. All lease payments can be applied to the final purchase price of US$329,000, after which advanced minimum royalty payments become due annually in the amount of the cash equivalence of 50 ounces of gold. Upon production, Bravada will receive royalty payments of 1.5% NSR on production of base metals and 3.0% NSR on precious metals. Goldspike will have the option to buy-down Bravada's royalties to 1% NSR for base metals and 1.5% NSR for precious metals for a cash payment of US$3,000,000. An underlying vendor also holds a royalty on the property, which is 1% NSR for all metals and can be reduced to 0.5% NSR for a cash payment of $3,000,000.
President Joe Kizis commented, "The South Lone Mountain property is not a core asset for Bravada; however, we recognize the property's potential to host significant Mississippi-Valley-Type (MVT) zinc/lead/silver, as well as Carlin-type gold. Goldspike's control of adjacent MVT mineralization at the historic Lone Mountain Zinc mine makes them an ideal partner to further explore and develop the South Lone Mountain property."
Bruce Dunham, President and CEO of Goldspike commented, "We are very pleased to have secured the Bravada claims because they add significant potential to the Lone Mountain Project. We now control all but one claim in the entire area and will move quickly to evaluate the area for zinc and precious metals."
About Bravada Gold Corporation
Bravada is a member of the Manex Resource Group of companies with an exploration office in Reno, from which it is exploring its extensive Carlin-type and low-sulfidation-type gold holdings strategically located within numerous productive gold trends in Nevada. Homestake Resource Corp. (HSR.V) owns approximately 9.8% of Bravada's 11,970,210 outstanding common shares.
About Goldspike Exploration, Inc.
Goldspike is a junior resource company focused on making high impact mineral discoveries in safe jurisdictions. Goldspike is currently exploring the Lone Mountain Zinc Property in the Eureka area of Nevada. Goldspike maintains a large portfolio of precious metals properties in Yukon that include properties adjacent to Kaminak Gold Corp., Victoria Gold Corp., and ATAC Resources Ltd.
Joseph Anthony Kizis, Jr. (AIPG CPG-11513, Wyoming PG-2576) is Bravada's President and is the Qualified Person within the meaning of NI 43-101 who prepared and approved the technical information disclosed in this news release.
On behalf of the Board of Directors of Bravada Gold Corp.
Joseph A. Kizis, Jr., Director, President, Bravada Gold Corp.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. These statements are based on a number of assumptions, including, but not limited to, assumptions regarding general economic conditions, interest rates, commodity markets, regulatory and governmental approvals for the company's projects, and the availability of financing for the company's development projects on reasonable terms. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, the timing and receipt of government and regulatory approvals, and continued availability of capital and financing and general economic, market or business conditions. Bravada Gold Corp. does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.
