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Pershing Resources Amends Lease Terms of Klondyke, Divide and Hot Creek Parcel of its West Bolo Property Agreements
Pershing Resources Amends Lease Terms of Klondyke, Divide and Hot Creek Parcel of its West Bolo Property Agreements.
About this update from Pershing Resources Company, Inc.
[{"type":"text","content":"The Company Lowers NSR Royalty Buyout Costs Across Its Exploration Project Holdings in Nevada RENO, NV / ACCESSWIRE / May 05, 2021 / Pershing Resources Company, Inc., ("Pershing" or the "Company") (OTC PINK:PSGR) today announced that it has amended the terms of the 100% mineral rights interest in its Klondyke and Divide properties as well as the Hot Creek parcel of the Company's West Bolo Gold and Silver properties located in Nevada. The amendments provide for comparable lease/purchase option agreements containing net smelter royalty (NSR) percentage obligations of 2% or less after takeaways for each of these properties. These amended terms are comparable to the previously amended mineral rights lease terms the Company negotiated with Americas Gold Exploration, Inc., for the Company's West Bolo propertyUnder the amended terms of the three lease agreements, the Company will continue the 20-year term lease/purchase option agreements on the Klondyke and Divide properties as well as the Hot Creek parcel on the West Bolo property. The Company recently negotiated a $2,000,000 reduction in the NSR percentage buyout price/cost for each agreement. The amended agreements for Klondyke and the Hot Creek parcel of the West Bolo property are 100% with Mountain Gold Claims, LLC, (MGC), while the amended agreement for the Divide Property is 50% with MGC and 50% with Blackrock Exploration, LLC. (BRE). Previously, the terms of the agreements for each of the properties included a 3% NSR, of which the first one percentage point could be bought out within five years from the date of the respective agreement for $1,000,000 and the second (of three) percentage points could have been purchased within ten years of the date of the respective agreement for $4,000,000. The amended agreements will now reflect NSR buyout terms of $1,000,000 and $2,000,000, respectively, for each NSR percentage point at the five and ten year timelines. In consideration for this, the Company will make an additional advanced royalty payment of 500,000 shares of restricted common stock to MGC in exchange for the $2,000,000 reduction in the purchase price of the buyout of the second percentage points of the 3% NSR on both the Klondyke property and the Hot Creek parcel of the West Bolo property lease agreements. The Company previously announced terms of...