Business
Fremont Gold Ltd. Acquires Option on the Historic Gold Bar Mine Property in Eastern Nevada
Vancouver, British Columbia--(Newsfile Corp. - September 12, 2017) - Fremont Gold Ltd. (TSXV: ...
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[{"type":"text","content":"Fremont Gold Ltd. Acquires Option on the Historic Gold Bar Mine Property in Eastern NevadaVancouver, British Columbia--(Newsfile Corp. - September 12, 2017) - Fremont Gold Ltd. (TSXV: FRE) (the \"Company\") is pleased to announce that it has entered into an option agreement with Ely Gold and Minerals Inc., a British Columbia based company which controls 96 unpatented and 12 patented mining claims over the historic Gold Bar mine area in Eureka County Nevada (the Property). Fremont can acquire a 100% interest in the property by making a series of cash payments totaling US$1,000,000 over five years (the Option) from the closing date (the \"Closing Date\").The Gold Bar Property comprises approximately 2235 hectares and is located in in the historic Gold Bar mining district in Eureka County, within the southern part of the Cortez Mineral Trend, 30 miles northwest of Eureka, Nevada. The center of the property hosts the historic open-pit Gold Bar mine, formerly operated by Atlas Precious Metals Inc. (\"Atlas\"). See the accompanying photo. Total cumulative production from the Gold Bar pit from 1986 through 1994 was 286,354 ounces of gold from 3,986,000 tons of ore.1View of Historic Gold Bar Pit 2To view an enhanced version of this graphic of the View of Historic Gold Bar Pit 2, please visit:https://orders.newsfilecorp.com/files/3169/28983_fremont1enhanced.jpgUnder the terms of the option agreement, the Company can acquire the Property, subject to 2% Net Smelter Return Royalty in favour of Ely Gold, by making an initial payment of US$10,000, followed by payments of: $40,000 six months after the Closing Date$100,000 one year after the Closing Date$100,000 two years after the Closing Date$100,000 three years after the Closing date$200,000 four years after the Closing Date$400,000 five years after the Closing Date (the final payment)In addition to the payments, the Company must pay advance royalty payments as follows:$25,000.00 on the first through third anniversary of the Closing Date; and$35,000.00 on the fourth anniversary of the Closing Date and on each anniversary thereafter.The Company can accelerate the exercise of the option and acquire 100% of the Property at any time, by giving Ely Gold and Minerals ten days' notice and making all the annual payments in full. In addition, Fremont will have the right to buy-down 1% of the underlyi...