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Lahontan Signs Binding Term Sheet to Acquire Strategic Advanced Gold-Silver Project Adjacent to Santa Fe
TORONTO, ON / ACCESSWIRE / May 15, 2023 / Lahontan Gold Corp (TSXV:LG)(OTCQB:LGCXF) (the " Compa...
About this update from Lahontan Gold Corp.
[{"type":"text","content":"Lahontan Signs Binding Term Sheet to Acquire Strategic Advanced Gold-Silver Project Adjacent to Santa FeTORONTO, ON / ACCESSWIRE / May 15, 2023 / Lahontan Gold Corp (TSXV:LG)(OTCQB:LGCXF) (the \"Company\" or \"Lahontan\") is pleased to announce that it has signed a binding term sheet (the \"Term Sheet\") with a wholly-owned subsidiary of Emergent Metals Corp (collectively \"Emergent\") to acquire the advanced West Santa Fe gold-silver exploration project (\"West Santa Fe\"; also known as Mindora), located only 15 km West of Lahontan's Flagship asset, the Santa Fe Mine, in Nevada's prolific Walker Lane. West Santa Fe hosts an oxidized gold-silver mineralized system in a geologic setting nearly identical to Santa Fe. Previous exploration drilling at West Santa Fe totals over 13,000 metres in 171 drill holes; only five holes are deeper than 165 metres. Modeling of drill hole data by Lahontan geologists outlines a shallow gold and silver system with a sufficient volume to host 0.5 to 1.0M ounces of oxidized gold and silver mineralization in an open-pit mining configuration[1].The Term Sheet requires Lahontan to make payments totalling US$1.8M over a seven-year period to Emergent, back-end loaded (please see details of the Term Sheet below) to exercise an option to acquire a 100% interest in the 11.8 square kilometre property. The option payments (excepting the $10,000 signing payment) can be made in a combination of cash and shares at Lahontan's discretion. In addition, the Company will commit to exploration expenditures totalling US$1.4M over the same seven-year period, these expenditures that should be sufficient to define an initial mineral resource estimate for West Santa Fe. The initial option payments and work commitments can be easily accommodated by Lahontan's current cash position and budget.Kimberly Ann, Lahontan Founder, CEO, President, and Director commented: \"The acquisition of West Santa Fe will be a significant milestone for Lahontan: A \"bolt-on\" asset which is accretive to the Santa Fe Mine that has the potential to add significant oxide gold and silver resource ounces for the Company. Back-end loaded, the Term Sheet allows Lahontan to conduct a definitive exploration program on the property with low monetary commitment by Lahontan, yet provides exposure to considerable resource upside. Combined with the continued...