The Prospector News

Relevant Gold Buys Out Option Completing Acquisition of 700 Leased Hectares at its Flagship Golden Buffalo Project

You have opened a direct link to the current edition PDF

Open PDF Close
Uncategorized

Share this news article

Relevant Gold Buys Out Option Completing Acquisition of 700 Leased Hectares at its Flagship Golden Buffalo Project

 

 

 

 

 

Relevant Gold Corp. (TSX-V:RGC) (OTCQB:RGCCF) is pleased to announce the Company has entered into a Purchase Agreement with Golden Buffalo Mining Company to complete the acquisition of 88 BLM mining claims (700 ha) (the “Subject Property”) in the core of the Company’s 3,766 hectare Golden Buffalo property in the South Pass Gold Field, Wyoming, USA.  The Subject Property was previously held under a lease with option to purchase agreement with GBMC.  Pursuant to the Agreement, GBMC will receive (i) 1,500,000 common shares of the Company, (ii) up to three potential milestone payments more particularly described below, and (iii) a 3% net smelter return (NSR) royalty on the Subject Property.

Pursuant to the success-based milestone payments, GBMC will receive (a) a US$1,000,000 cash payment and 500,000 common shares of the Company upon the completion of a NI 43-101 compliant mineral resource estimate exceeding one million ounces of gold on the Subject Property, (b) a US$1,000,000 cash payment upon filing by the Company of a NI 43-101 compliant Feasibility Study for the Subject Property; and (c) a US$9,000,000 cash payment upon the commencement of commercial production of the Subject Property or any portion thereof.

The Purchase Agreement eliminates the four remaining US$300,000 annual lease payments and replaces the US$15,000,000 purchase price specified in the original Lease Option by issuing 1,500,000 common shares of the Company. Milestone payments are success-based and paid upon achieving each milestone. The NSR remains unchanged from the original Lease Option. 2% of the NSR can be repurchased for US$5,000,000.

“This agreement represents a big win for Relevant Gold in both the short and long-term, allowing us to minimize our burn rate and safeguarding our flagship Golden Buffalo asset. The restructuring moves $16.2M of calendar-triggered payments to success-based milestones,” said Relevant Gold CEO Rob Bergmann. “As a bonus, we get to bring two incredible operators onto the team, both of whom are now entirely aligned with the Company’s goals, and who will greatly strengthen our connection to local communities and day-to-day operations.”

The 3,766 hectare Golden Buffalo property is one of the Company’s two flagship assets and has returned rock chip assays from trenching highlighted by 168 g/t Au, followed up in 2022 by a top drilling intercept of 83.8 g/t Au over 1 metre in the first ever drilling program where 54% of drill holes from the 3,500 metre program intersected shear-hosted gold mineralization (see Feb. 06, 2023 Press Release) .

Technical Team Appointments

In addition to the Agreement, the Company is excited to announce the principals at GBMC will be joining the Relevant Gold team and fill two critical roles: (i) Jerome Hutchison will serve as Communities Advisor and Site Manager and, (ii) Jacob Tyra will serve as Operations Manager. As part of the service agreement, Mr. Hutchison and Mr. Tyra will each be issued 150,000 common share options at an exercise price of $0.20. These options will vest over 12 months and expire on January 09, 2027.

Jerome Hutchison – Community Advisor and Site Manager

 

Mr. Hutchison was born and raised in Riverton, Wyo., and has lived, worked, and established businesses in Riverton and around the state. He formed a start-up company and grew it to an independent franchise with four storefronts throughout the state. Mr. Hutchison is active in the community, serving on multiple homeowner’s boards, church boards, athletic boards, and city committees. He started GBMC in 2019 with the acquisition of a gold-rich property in South Pass. His business and community affairs have brought reputable relationships and he’s a respected member of the community.

Jacob Tyra – Operations Manager

 

Born and raised in Wyoming, Mr. Tyra has more than 25 years of experience in the hard rock mining industry. He got his start in uranium mining outside of Jeffery City, Wyo., and later worked on mining projects in Nevada, New Mexico, Idaho, Montana, Wyoming, and Alaska where he worked as Superintendent at the Pogo Mine. Mr. Tyra has extensive supervisory, management, and safety training experience. He holds an MSHA blue card certification, an explosives permit, and was a captain in mine rescue teams.

 

 

About Relevant Gold Corp.

 

Relevant Gold Corp. is a North American gold exploration company focused on the acquisition, exploration, discovery, and development of district-scale gold projects in the state of Wyoming – one of the most mining friendly jurisdictions in the United States and globally. Founded by experienced exploration geologists, Relevant Gold is managed by a highly respected team with a proven record of significant value creation for shareholders.

Posted January 15, 2024

Share this news article

MORE or "UNCATEGORIZED"


Dore Copper Confirms Copper Mineralization on its Cedar Bay Southwest Extension

Doré Copper Mining Corp. (TSX-V: DCMC) (OTCQB: DRCMF) (FRA: DCM)... READ MORE

July 24, 2024

PTX Metals Announces Successful Near Surface Drill Results from W2 Cu-Ni-PGE Project which Significantly Expanded the Mineralized Trend Outside the W2 Deposit

PTX Metals Inc. (CSE: PTX) (OTCQB: PANXF) (Frankfurt: 9PX)  is p... READ MORE

July 24, 2024

Callinex Mines Closes Oversubscribed $2.1 million Private Placement Financing

Callinex Mines Inc.  (TSX-V: CNX) (OTCQX: CLLXF) is pleased to a... READ MORE

July 24, 2024

Red Pine Confirms Independent Sampling and Assaying Validating Corrected Assay Database for Updated Resource Estimation

Red Pine Exploration Inc. (TSX-V: RPX) (OTCQB: RDEXF) reports the... READ MORE

July 24, 2024

MAG Announces Second Quarter 2024 Production From Juanicipio and Increases Grade Guidance

MAG Silver Corp. (TSX:MAG) (NYSE American: MAG) reports productio... READ MORE

July 24, 2024

Copyright 2024 The Prospector News