Augusta acquiring Reward project for US$45 million, Nevada
Augusta Gold Corp. [G-TSX; AUGG-OTCQB; 11B-FSE] has entered into an agreement to acquire the Reward project, located just seven miles from the company’s Bullfrog project 120 miles northwest of Las Vegas, Nevada.
Reward project highlights include a historical estimate of measured and indicated mineral resources of 416,8002 ounces of oxide gold grading 0.022 oz/ton (0.75 g/t gold) and a historical estimate of proven and probable reserves of 377,0003 oz of gold grading 0.024 oz/ton (0.82 g/t) gold.
Historical estimate test work has projected gold recoveries of 81%. The project has all required permits in place for construction. Augusta Gold anticipates developing the Reward project as soon as historical estimates are updated.
The company plans to immediately undertake work to update the historical estimates with development of the Reward project anticipated to follow shortly thereafter. The Reward project fits well with the company’s Bullfrog project which contains measured and indicated mineral resources of 1,209,0004 ounces of gold grading 0.53 g/t gold and inferred resources of 258,000 ounces of gold at 0.48 g/t gold. It is anticipated that significant synergies can be realized between the projects.
Don Taylor, president andCEO, commented: “We are pleased to bring the Reward project into our ongoing operations being advanced at the Bullfrog project. Once we have updated past studies, we anticipate that the Reward project will be a shovel-ready, low-risk oxide gold project in close proximity to our Bullfrog project that will enable the company to be a near-term producer while we complete the permitting process at Bullfrog.”
| Augusta Gold will purchase the Reward project from Waterton Nevada Splitter LLC for the following consideration of US$12.5-million cash paid on closing of the transaction with cash on hand, US$15.0-million comprising 7.8 million Augusta Gold shares paid on closing, with the remaining payable at the time of Augusta Gold’s next equity financing, in cash or Augusta Gold shares, provided the additional amount of shares does not result in Waterton owning more than 9.99% of Augusta Gold’s issued and outstanding shares and US$17.5-million cash paid within 90 days of closing, which is backstopped by the company’s executive chairman and significant shareholder, Richard Warke. Closing of the transaction is subject to several conditions, including receipt of all required regulatory approvals. |
Augusta Gold’s Bullfrog gold project is located in the prolific Bullfrog mining district approximately four miles west of Beatty, Nevada. The company controls approximately 5,554 hectares of mineral rights, including the Bullfrog and Montgomery-Shoshone deposits, and has further identified significant additional mineralization around the existing pits and defined several exploration targets that could further enhance the project.