Business
U.S. Gold Corp. Announces the sale of its interest in the Maggie Creek Property for $2.75 million to Nevada Gold Mines LLC (Barrick (61.5%) and Newmont (38.5%) and retains a potential royalty
CHEYENNE, Wyo., Nov. 10, 2022 /PRNewswire/ -- U.S. Gold Corp. (NASDAQ: USAU) ("U.S. Gold," the "Company," "we," "our" or "us"), a gold exploration and
About this update from U.s. Gold Corp.
[{"type":"text","content":"CHEYENNE, Wyo., Nov. 10, 2022 /PRNewswire/ -- U.S. Gold Corp. (NASDAQ: USAU) (\"U.S. Gold,\" the \"Company,\" \"we,\" \"our\" or \"us\"), a gold exploration and development company, announces the execution on November 9, 2022 of a transaction related to the Maggie Creek Property among Nevada Gold Mines LLC (\"NGM\"), Orogen Royalties Inc. (\"Orogen\"), and U.S. Gold (the \"Transaction\").\nThe TransactionRenaissance Exploration, Inc. (\"RenEx\"), which is an indirect wholly-owned subsidiary of Orogen, and the Company's wholly-owned subsidiary, Orevada Metals, Inc. (\"Orevada\"), are parties to an Exploration Earn-In Agreement dated February 19, 2019 (the \"Original Earn-In Agreement\"), pursuant to which Orevada, by making certain payments and incurring certain exploration expenditures, has the right to earn at least a 50% interest and up to a 70% interest in the Maggie Creek Property, owned by RenEx, in Eureka County, Nevada.\nPursuant to an Assignment and Assumption Agreement dated November 9, 2022, among NGM, Orogen, RenEx, U.S. Gold, and Orevada, U.S. Gold caused Orevada to assign its interest in the Original Earn-In Agreement to NGM. Simultaneous with that assignment, NGM and RenEx entered into an Amended and Restated Exploration Earn-In Agreement, pursuant to which NGM can earn a 100% interest in the Maggie Creek Property (the \"NGM Option\").\nAs consideration for the assignment of the Original Earn-In Agreement to NGM, U.S. Gold received an upfront cash payment of $2.75 million dollars from NGM, and NGM agreed that if it exercises the NGM Option and acquires the Maggie Creek Property, it will grant to U.S. Gold a 0.5% Net Smelter Returns royalty on all gold and other recovered and saleable minerals from the Maggie Creek Property (the \"U.S. Gold Royalty\"), pursuant to a separate royalty agreement (the U.S. Gold Royalty Agreement\") between NGM and U.S. Gold, the terms of which have been fully agreed as part of the Transaction. Under the U.S. Gold Royalty Agreement, NGM will have the right to buy back one-half of the U.S. Gold Royalty (reducing the royalty to 0.25% of Net Smelter Returns) for a fixed price of $500,000. In addition, the U.S. Gold Royalty Agreement will provide that U.S. Gold waives the first $800,000 of production royalty payments owed to it, regardless of whether NGM exercises its buy-back rights. Under ...