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Lincoln Signs Letter of Intent Reducing Wheeler Royalty to 2%
VANCOUVER, BC / ACCESSWIRE / May 4, 2021 / Lincoln Gold Mining Inc. ("Lincoln" or the "Comp...
About this update from Lincoln Gold Mining Inc
[{"type":"text","content":"Lincoln Signs Letter of Intent Reducing Wheeler Royalty to 2%VANCOUVER, BC / ACCESSWIRE / May 4, 2021 / Lincoln Gold Mining Inc. (\"Lincoln\" or the \"Company\") (TSXV:LMG) is pleased to announce it has finalized negotiations to reduce the overall Pine Grove project royalties to 2% or less in the known resource areas. The Company believes that the significantly reduced NSR on both of the major Pine Grove properties, the Wheeler and Wilson, will greatly enhance the financing opportunities as it plans for the final stages of permitting and development of the Pine Grove project (see news release of March 23, 2021 re: Wilson royalty reduction).Lincoln signed a non-binding Letter of Intent (\"LOI\") with Wheeler Mining Company (\"Wheeler\") on the Wheeler property which comprises a substantial part of the Company's Pine Grove project in Nevada. Under the terms of the Wheeler LOI, the Company will buydown the net smelter returns royalty (\"NSR) from 7% to 2% as follows:US$100,000 payable on September 30, 2021, June 30, 2022 and December 31, 2022 (total $300,000);US$200,000 payable on September 30, 2023 and April 30, 2024 (total: $400,000);US$500,000 payable on June 30, 2024, September 30, 2024 and December 31, 2024 (total: 1,500,000);US$750,000 payable on April 30, 2025, August 31, 2025 and December 31, 2025 (total: $2,250,000);US$550,000 payable on April 30, 2026.The aggregate consideration of the buydown over 6 years is US$5,000,000.The LOI is subject to, amongst other things, the execution of a definitive agreement, project financing, and regulatory approval, as applicable.In addition to the royalty reductions, over the last 18 months, the Company has significantly cleaned up its balance sheet, advanced Pine Grove permitting requirements and expanded its portfolio by acquiring a copper, nickel and cobalt property in Quebec.About LincolnLincoln Gold Mining Inc. is an advanced-stage gold mine exploration and development company holding a 100% interest in the Pine Grove Gold Project, in the Walker Lane structural zone of western Nevada. The Company has prepared a preliminary economic assessment of the Pine Grove Gold Project pursuant to National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Lincoln is working with the USFS to secure the permits necessary to develop the Pine Grove Gold Project into a low-cost heap l...