Paramount Gold Nevada has agreed to acquire a 100% stake in the Bald Peak Project located in Mineral County, Nevada in the US from Nevada Select Royalty.
Total consideration for the transaction is $300,000.
The buyer will pay $20,000 to Nevada Select on closing of the transaction and $30,000 on receipt of a drilling permit.
Nevada Select will also receive $50,000 one year following the permit date, and a further $50,000 on each of the second and third years following the permit date.
The gold ore mining company will make a final payment of $100,000 four years following the permit date.
Upon option exercise, Nevada Select will retain Net Smelter Royalty (NSR) of 3% on the Nevada Select Claims.
Paramount president and COO Glen Van Treek said that the acquisition will expand the firm’s portfolio of assets in a cost-effective manner to drive growth.
Treek added: “This project has excellent gold values at surface but has never been drilled and is in one of the world’s best mining jurisdictions. Bald Peak fits our strategy of applying our team’s technical expertise to de-risk and advance US precious metals assets through the mine development cycle.”
The Bald Peak is said to be a large gold and silver epithermal system located in the prolific Bodie-Aurora-Borealis district. This area produced more than three million ounces of gold through open-pit mines.
Paramount said that the project’s gold and silver mineralisation is associated with strongly silicified rock which is a well-defined 4-mile-long structural system.
In a press statement, the firm said: “Surface outcropping has returned rock samples grading over 8g/t gold. The gold-bearing silicified material exhibits a strong, easy-to-follow resistivity signature.”
Following identification of alteration systems that stretch beyond the Bald Peak property during due diligence, Paramount has staked additional claims. These claims extend towards Hecla Mining’s Aurora Mine.
In order to map silicification at depth to identify drill targets, Paramount plans to undertake surface sampling, geological reconnaissance, and a subsequent geophysical survey.
Nevada Select is owned by Ely Gold Royalties, which was acquired by Gold Royalty recently.