TORONTO, Aug. 31, 2020 /CNW/ - Nubian Resources Ltd.
("Nubian" or the "Company") (TSXV: NBR) is pleased to announce that
the Company has entered into a binding letter of intent ("LOI")
with Athena Silver Corporation (OTCQB: AHNR) ("Athena") for Athena
to acquire the Company's Excelsior Springs exploration project
located in Esmeralda County,
Nevada, USA (the "Property"). Nubian will retain a 1%
NSR on the Property and Athena will have the right to purchase 0.5%
for $500,000 and the remaining 0.5%
at fair market value. The completion of the transaction is
conditional upon the Company obtaining the prior approval of the
transaction from the TSX Venture Exchange (the "TSXV") and any
other approvals required under applicable laws.
Under the terms of the LOI, Athena has paid a US$10,000 deposit to Nubian for an exclusive
90-day due diligence period during which time Nubian and Athena
have agreed to finalize definitive agreements with respect to the
transaction, and Athena will make an application for listing on a
Canadian stock exchange and will raise a minimum of US$750,000. On closing, Athena will have a
maximum of 75 million common shares outstanding and will issue
Nubian 50 million common shares valued at $0.05 per share, representing an approximate 40%
interest in Athena. Nubian has agreed to a hold period of six
months from the date of issuance of the Athena consideration
shares. The Company intends to distribute all or a portion of
the Athena consideration shares received by it to its shareholders
following the closing of the transaction as a return of capital.
Any such distribution of Athena shares would be subject to
obtaining the prior approval of the Company's shareholders and any
required approvals of the TSXV.
Martin Walter, President and CEO
of Nubian, stated, "The divestment of the Excelsior Springs
property to Athena is expected to unlock the value in the Excelsior
Springs property for shareholders quicker given Nubian's focus on
its properties in Australia and
Peru."
The Excelsior Springs mining claims cover an area of 3.5 square
kilometres including the historic Buster mine, which has past
production of about 15,000 tonnes (t) at 37 grams per tonne (g/t)
gold (Au) to a maximum depth of 70 metres (m). The Property
is located in the Walker-Lane tectonic zone of southern
Nevada, which hosts a number of
large historic gold mines. Total gold production from the zone
exceeded 20 million ounces (Moz), with notable deposits including
Goldfield (5Moz), Bullfrog (2Moz),
Tonopah (2Moz), Mineral Ridge
(1.5Moz) and Comstock (8Moz Au, 200Moz Ag). Nubian owns 100%
of the 140 unpatented claims at Excelsior Springs with two
additional leased patented claims that are subject to a 2% NSR on
gold production. Exploration work in 2011 included
3,657m of RC drilling with
significant intercepts from that drilling program highlighted
below:
- GE08: 7.6m at 5.1g/t Au from
93.0m
- GE14: 7.6m at 2.9g/t Au from
19.8m
- GE02: 3.0m at 4.7g/t Au from
0m
- GE19: 6.1m at 1.9g/t Au from
117.3m and
- GE15: 13.7m at 0.8g/t Au from
61.0m
Gold mineralization discovered at Excelsior to date occurs in
quartz vein stock-works and silicified zones in hornfels and
calc-silicate altered country rock and generally close to porphyry
dykes. The best mineralization (grade and thickness) is found
in altered sediments immediately above porphyry dykes that have
intruded along existing east and east-northeast trending faults.
The mineralized stock-work vein zones are shallow and have a
relatively flat plunge, making them amenable to open pit mining
methods, if economic zones are outlined.
Exploration to date has focused on a 2.5 km long section in the
central part of the zone where mineralization is at or near the
surface. Surface mapping and an Induced Polarization (IP)
geophysical survey identified multiple zones of silicification that
correlate well with the known mineralization. Many of the
silicified zones defined by the IP (resistivity highs) have not
been tested by drilling and remain targets for future exploration,
approximately 4km of the zone is concealed beneath thin transported
cover.
A National Instrument 43–101 technical report was filed
by the Company on the Excelsior Springs Project in 2010.
Technical information in this news release has been reviewed and
approved by Dr. Scott Jobin-Bevans
(P.Geo.), a Director of Nubian, who is a Qualified Person under the
definitions established by the National Instrument 43-101.
About Athena Silver Corporation
Athena Silver Corporation is focused on the exploration and
development of precious metals in the Western United States.
Its core holding is 36 unpatented claims totaling over 720 acres
located in the Historic Calico Mining District in San
Bernardino County, California. Athena's unpatented
claims are located adjacent to the historic silver deposits known
as Langtry and Pan American Silver's Waterloo. Athena also
owns more than 800 acres of investment property in San Bernardino County, California and has an
option to acquire a 1% royalty on the Langtry Silver Deposit.
About Nubian Resources
Nubian Resources Ltd. is a public traded precious and base
metals exploration company listed on the TSX Venture Exchange. The
Company is managed by a team of experienced mining and geological
professionals. In May 2020, Nubian
entered into an agreement to acquire and develop the Yandoit Gold
Project in central Victoria,
Australia and in July 2020,
Nubian entered into an agreement to acquire Stavely Mineral
Limited's Fosterville East project and its Lefroy and Matthina projects in Tasmania. Nubian's main asset is the
Esquilache Silver Project located within the Tintaya porphyry
copper belt of southern Peru.
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.
Caution Regarding Forward Looking Statements
Certain
statements contained in this press release constitute
forward-looking information. These statements relate to future
events or future performance. The use of any of the words "could",
"intend", "expect", "believe", "will", "projected", "estimated" and
similar expressions and statements relating to matters that are not
historical facts are intended to identify forward-looking
information and are based on Nubian's current belief or assumptions
as to the outcome and timing of such future events. Actual future
results may differ materially. In particular, this release contains
forward looking information relating to, among other things,
statements with respect to the potential completion of the sale of
the Property, the consideration payable to the Company and the
intended distribution of the Athena shares received by the Company
as a return of capital. Various assumptions or factors are
typically applied in drawing conclusions or making the forecasts or
projections set out in forward-looking information. Those
assumptions and factors are based on information currently
available to Nubian. Although such statements are based on
reasonable assumptions of Nubian's management, there can be no
assurance that any conclusions or forecasts will prove to be
accurate.
Forward-looking information contained in this news release is
based on certain factors and assumptions regarding, among other
things. While Nubian considers these assumptions to be reasonable
based on information currently available to them, they may prove to
be incorrect. Forward looking information involves
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
information. Such factors include risks inherent in the exploration
and development of mineral deposits, including risks relating to
changes in project parameters as plans continue to be redefined,
risks relating to variations in grade or recovery rates, risks
relating to changes in mineral prices and the worldwide demand for
and supply of minerals, risks related to the COVID-19
pandemic and current global financial conditions, increased
competition, access and supply risks, reliance on key personnel,
operational risks, regulatory risks, including risks relating to
obtaining necessary licenses and permits, financing, capitalization
and liquidity risks, title and environmental risks and risks
relating to delay or failure to satisfy the closing conditions
relating to sale of the Property and in connection with recently
announced acquisitions in Australia.
The forward-looking information contained in this release is
made as of the date hereof, and Nubian is not obligated to update
or revise any forward-looking information, whether as a result of
new information, future events or otherwise, except as required by
applicable securities laws.
Because of the risks, uncertainties and assumptions contained
herein, investors should not place undue reliance on
forward-looking information. The foregoing statements expressly
qualify any forward-looking information contained herein.
SOURCE Nubian Resources Ltd.