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Bravada Signs LOI for Highland Au/Ag Prospect, Nevada; Drilling Expected Summer 2021
Vancouver, British Columbia--(Newsfile Corp. - April 14, 2021) - Bravada Gold Corporation (T...
About this update from Bravada Gold Corporation
[{"type":"text","content":"Bravada Signs LOI for Highland Au/Ag Prospect, Nevada; Drilling Expected Summer 2021Vancouver, British Columbia--(Newsfile Corp. - April 14, 2021) - Bravada Gold Corporation (TSXV: BVA) (the \"Company\" or \"Bravada\") announces that it has executed a Letter of Intent (\"LOI\") with Headwater Gold Inc (\"Headwater\") whereby Headwater may earn up to a 100 percent interest in Bravada's low-sulfidation Highland gold/silver project, located within the Walker Lane Gold trend in Western Nevada. The LOI sets terms for the earn in, and possible purchase, and includes an Exclusivity period of up to 60 days during which time Headwater will conduct additional due diligence for the Highland property and will negotiate a Definitive Agreement with Bravada. Drilling at several targets that have already been identified is anticipated to begin immediately after the due diligence period and the receipt of drill permits.Option Stage 1 - Headwater may earn a 51 percent interest by making certain cash or share payments and incurring aggregate exploration expenditures of US$5 million over a maximum of six years. Exploration expenditures in the first 18 months will be a minimum of US$250,000. Payments include advanced minimum royalty (\"AMR\") payments to underlying property vendors, claim fees, an initial cash payment of US$10,000 to Bravada.Option Stage 2 - Headwater may increase its interest to 75 percent within four years of earning its 51% interest by incurring an additional US$5 million in exploration expenditures and paying Bravada US$250,000 within 60 days of completing Option Stage 1. Payment may be paid as cash or up to 50% in shares at Headwater's option.Option Stage 3 - Upon earning a 75 percent interest, Headwater will have an option for 90 days to purchase Bravada's remaining interest under commercially standard terms. Bravada and Headwater will form a Joint Venture at the appropriate ownership ratio of 49/51 or 25/75 with industry standard terms if Headwater does not exercise the option to purchase 100% of Bravada's interest.The Highland property is subject to a 3% NSR royalty in favor of underlying vendors of the property, subject to a reduction of the royalty to 2% upon payment of US$1 million. All AMR payments will be deducted from production royalties. Approximately US$580,000 in AMR payments have been made to date.President Joe Ki...