The Prospector News

1.5% GOR on NuLegacy’s Red Hill property sold for US$3 Million

You have opened a direct link to the current edition PDF

Open PDF Close

Share this news article

1.5% GOR on NuLegacy’s Red Hill property sold for US$3 Million






NuLegacy Gold (TSX-V: NUG) (OTCQB: NULG.F) is pleased to welcome Metalla Royalty & Streaming Ltd. as a new stakeholder in NuLegacy’s 108 square kilometer flagship Red Hill property in the heart of Cortez gold trend of North-Central Nevada.


Metalla has announced the purchase (detailed below) of one half of the 3% gross overriding royalty currently held by Idaho Resources Corporation[*] on NuLegacy’s Red Hill property to close June 1, 2020.


Valuing GORs is a complicated business made easier in this instance by the straightforward nature of the purchase price for IRC; thus prorating the US$4 million purchase price for the total of 2% GOR purchased (1.5% GOR on Red Hill and 0.5% GOR on Anglo/Zeke claims) values a 1% GOR in the Red Hill project at ~US$2 million.i  By comparison NuLegacy Gold, which owns/controls a 100% working interest in the Red Hill property, has an aggregate market value of ~ C$32.5 million.ii


Please follow this link to an updated and refreshed Investor presentation:


On April 27, 2020, Metalla entered into a share purchase agreement to acquire, on an arm’s length basis, 100% of the issued and outstanding shares of IRC for a purchase price of US$4 million payable in cash and shares of Metalla. Metalla is a precious metals royalty and streaming company listed for trading on the NYSE American and TSX Venture exchanges.


IRC is a privately held Nevada corporation which, upon closing of the Metalla transaction, will hold a 1.5% GOR over NuLegacy’s Red Hill property located on trend to the southeast of the Cortez operations and Goldrush project. IRC also holds a 0.5% gross overriding royalty on the Anglo/Zeke claims block located immediately northwest of and adjacent to NuLegacy’s Red Hill property and owned by Nevada Gold, and certain reversionary rights to acquire certain mineral claims under the Cortez joint venture plan of operations between Barrick Gold and Newmont Mining should such joint venture choose to relinquish their mineral claim interests. Metalla reports that closing of the IRC acquisition is subject to customary closing conditions and exchange approvals and is expected to occur on or around June 1, 2020.


About NuLegacy Gold Corporation: Focused on confirming high-grade Carlin-style gold deposits on its premier 108 sq. km (42 sq. mile) district scale Red Hill Property in the Cortez gold trend of Nevada.  The Red Hill Property is located on trend and adjacentI to the three multi-million ounce Carlin-type gold deposits (the Pipeline, Cortez Hills and Goldrush deposits) that are amongst Barrick Gold’s largest, lowest cost and politically safest gold mineII.


I The similarity and proximity of these deposits in the Cortez Trend is not necessarily indicative of the gold mineralization in NuLegacy’s Red Hill Property.

II As extracted from Barrick’s Q4-2013 and Q1-2014 reports.  As reported by Barrick, the Goldrush resource contains 8,557,000 indicated ounces of gold within 25.78 million tonnes grading ~10.57 g/t and 1,650,000 inferred ounces within 5.6 million tonnes grading ~9.0 g/t.


Posted May 6, 2020

Share this news article


Goliath Resources Closes Upsized Brokered Private Placement for Gross Proceeds of C$9.65 Million

Goliath Resources Limited (TSX-V: GOT) (OTCQB: GOTRF) (Frankfurt:... READ MORE

May 18, 2023

Vendetta Reports High Grade Exploration Intersections in Zone 2 and 3 at the Pegmont Lead-Zinc Project, Queensland

Vendetta Mining Corp. (TSX-V: VTT) is pleased to announce the dri... READ MORE

May 18, 2023

Guanajuato Silver Drills 4.89 metres True Width of 359 g/t AgEq at San Ignacio

Results Deepen Previous Hi-Grade Drill Intercepts Guanajua... READ MORE

May 18, 2023

North Arrow Closes $2.42M Private Placement Financing and Sale of Royalty Interests in Loki Project, NWT

North Arrow Minerals Inc. (TSX-V-NAR) is pleased to announce it h... READ MORE

May 18, 2023

Luminex Hits Long High-Grade Intercept in New Breccia Pipe at Cuyes; 33 Metres of 5.4 g/t Au Eq

Cuyes West Drilling Highlights: CU23-25 – 203.0 metres grading ... READ MORE

May 18, 2023

Copyright 2023 The Prospector News