Allegiant Gold Ltd. (“Allegiant” or the “Company”) (AUAU:
TSX-V) (AUXXF: OTCQX) is very pleased to announce that it
has signed a definitive agreement with Summa Silver (“Summa”) (CSE:
SSVR) whereby Summa can acquire up to a 100% interest in the
historic Mogollon silver-gold mining district (the “Property”) of
southwestern New Mexico from Allegiant Gold Ltd (“Allegiant”)
(TSXV: AUAU).
Peter Gianulis, CEO of Allegiant Gold,
commented: “We are very excited to have reached an
agreement with Summa. Their dedication and professionalism
throughout this process was unparalleled and we are confident that
we selected the right partner to develop one of the best
undeveloped silver projects in the U.S. We look forward to
their progress and our ability to focus on the development of
Eastside, our flagship gold-oxide project in Nevada. Allegiant now
has four projects farmed out, three of which are expected to be
drilled over the coming month in addition to drilling up to 15,000
metres at Eastside this season. We continue to execute our business
plan and are very pleased with the progress we have made this
year.”
ACQUISITION TERMS
Summa may earn up to a 100% interest in the
Property from Allegiant in two phases.
Phase I is an option to earn a 75% interest in
the Property over three years for staged payments totalling
US$350,000 in cash, 200,000 shares, US$1,450,000 of value in
shares*, and a final payment of US$1,000,000 which may be paid in
cash and/or shares at the election of Summa. Additionally, the
Phase I earn-in includes a US$3,000,000 work commitment on the
Property.
Phase I – Payment Schedule on Option to
Earn 75%:
Date |
Cash (USD) |
Shares (USD) |
Effective Date |
$50,000 |
200,000 shares |
1st Anniversary |
$100,000 |
$300,000 |
2nd Anniversary |
$100,000 |
$500,000 |
3rd Anniversary |
$100,000 |
$650,000 |
3rd Anniversary |
$1,000,000 |
Total Consideration (USD) |
$2,800,000 + 200,000 shares |
+Shares calculated from 20-day
volume-weighted-average-price
Phase I – Work Commitment:
Date |
Work Commitment (USD) |
1st Anniversary |
$250,000 |
2nd Anniversary |
$1,250,000 |
3rd Anniversary |
$1,500,000 |
Total |
$3,000,000 |
After the 75% earn in, Summa can then elect to
either form a 75/25 Joint Venture with Allegiant or purchase the
remaining 25% interest for US$3,000,000 in cash and shares, a
minimum of US$1,000,000 of which must be in cash.
QUALIFIED PERSON
The technical content of this news release has
been reviewed and approved by both, Andy Wallace, CPG, Director of
Allegiant Gold, and Galen McNamara, P. Geo., CEO of the Company.
Both individuals are qualified persons as defined by National
Instrument 43-101. The Qualified Persons have not verified the data
disclosed, including sampling, analytical and test data underlying
the information or opinions contained in the written
disclosure.
ABOUT MOGOLLON
The Property consists of 81 patented mining
claims and 86 unpatented lode mining claims located in Catron
County, New Mexico. The patented claims are surrounded by lands
administered by the United States Forest Service. Seventy-one of
the patented claims are leased under two separate agreements.
Sixty-four of the unpatented claims are leased under one agreement.
The remaining patented and unpatented claims are 100% owned by
Allegiant.
ABOUT SUMMA SILVER CORP
Summa Silver Corp is a Canadian junior mineral
exploration company. Summa has the option to earn a 100% interest
in the Hughes property located in central Nevada. The Hughes
property is host to the high-grade past-producing Belmont Mine, one
of the most prolific silver producers in the United States between
1903 and 1929. The mine has remained inactive since commercial
production ceased in 1929 due to heavily depressed metal prices and
little to no modern exploration work has ever been completed.
ABOUT ALLEGIANT
Allegiant owns 100% of 10 highly-prospective
gold projects in the United States, 7 of which are located in the
mining-friendly jurisdiction of Nevada. Three of Allegiant’s
projects are farmed-out, providing for cost reductions and
cash-flow. Allegiant’s flagship, district-scale Eastside project
hosts a large and expanding gold resource and is located in an area
of excellent infrastructure. Preliminary metallurgical testing
indicates that both oxide and sulphide gold mineralization at
Eastside is amenable to heap leaching.
ON BEHALF OF THE BOARD
Peter Gianulis CEO
For more information contact:
Investor Relations (604) 634-0970 or
1-888-818-1364 ir@allegiantgold.com
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Certain statements and information contained in
this press release constitute "forward-looking statements" within
the meaning of applicable U.S. securities laws and “forward-looking
information” within the meaning of applicable Canadian securities
laws, which are referred to collectively as "forward-looking
statements". The United States Private Securities Litigation Reform
Act of 1995 provides a “safe harbor” for certain forward-looking
statements. Forward-looking statements are statements and
information regarding possible events, conditions or results of
operations that are based upon assumptions about future economic
conditions and courses of action. All statements and information
other than statements of historical fact may be forward-looking
statements. In some cases, forward-looking statements can be
identified by the use of words such as “seek”, “expect”,
“anticipate”, “budget”, “plan”, “estimate”, “continue”, “forecast”,
“intend”, “believe”, “predict”, “potential”, “target”, “may”,
“could”, “would”, “might”, “will” and similar words or phrases
(including negative variations) suggesting future outcomes or
statements regarding an outlook. Such material risks and
uncertainties include, but are not limited to, the Summa’s ability
to raise sufficient capital to fund its obligations under its
property agreements going forward, to maintain its mineral tenures
and concessions in good standing, to explore and develop the
Mogollon projects, and for general working capital purposes;
changes in economic conditions or financial markets; the inherent
hazards associated with mineral exploration and mining operations,
future prices of silver and other metals, changes in general
economic conditions, accuracy of mineral resource and reserve
estimates, the ability of Summa to obtain the necessary permits and
consents required to explore, drill and develop the project and if
obtained, to obtain such permits and consents in a timely fashion
relative to Summa’s plans and business objectives for the projects;
the general ability of the Summa to monetize its mineral resources;
changes in environmental and other laws or regulations that could
have an impact on Summa’s operations, compliance with environmental
laws and regulations, aboriginal title claims and rights to
consultation and accommodation; dependence on key management
personnel; general competition in the mining industry. Such
forward-looking statements are based on a number of material
factors and assumptions and involve known and unknown risks,
uncertainties and other factors which may cause actual results,
performance or achievements, or industry results, to differ
materially from those anticipated in such forward-looking
information. You are cautioned not to place undue reliance on
forward-looking statements contained in this press release. Some of
the known risks and other factors which could cause actual results
to differ materially from those expressed in the forward-looking
statements are described in the sections entitled “Risk Factors” in
Allegiant’s Listing Application, dated January 24, 2018, as filed
with the TSX Venture Exchange and available on SEDAR under
Allegiant’s profile at www.sedar.com. Actual results and
future events could differ materially from those anticipated in
such statements. Allegiant undertakes no obligation to update or
revise any forward-looking statements included in this press
release if these beliefs, estimates and opinions or other
circumstances should change, except as otherwise required by
applicable law.
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