Renaissance Gold to offer 70% stake in Jake Creek project in US

26 April 2018 (Last Updated April 26th, 2018 11:15)

Renaissance Gold has signed an earn-in agreement via its wholly owned subsidiary Kinetic Gold (US) to offer Ginguro Jake a 70% interest in the Jake Creek project in Humboldt County, Nevada, US.

Renaissance Gold has signed an earn-in agreement via its wholly owned subsidiary Kinetic Gold (US) to offer Ginguro Jake a 70% interest in the Jake Creek project in Humboldt County, Nevada, US.

Ginguro Jake will be required to incur an expenditure of $3m over a five-year period in exchange for the agreed stake under the deal.

The company is also expected to make payments totalling $25,000 to Renaissance before the first anniversary of the agreement.

"Ginguro Jake will be required to incur an expenditure of $3m over a five-year period in exchange for the agreed stake under the deal."

Renaissance will immediately exercise its option of acquiring 100% of the project by issuing 372,541 common shares to Ivy Minerals.

The Jake Creek project contains a low-sulphidation epithermal gold target on the western margin of the Northern Nevada Rift.

Follow-up activity was initially not performed at the site, despite the discovery of historical gold drill intercepts.

Ginguro is slated to undertake a surface geologic mapping and geochemical sampling programme at the project in the near future.

The company intends to integrate the data collected from the programme with existing geophysical and drilling information in order to develop a follow-up drilling campaign.

In addition, Renaissance has also acquired the Mars project in Lincoln County, Nevada, through a lease / option to purchase agreement with an undisclosed third party as part of a separate development.

The company made a payment of $10,000 upon the signing of the definitive agreement.

Renaissance will also be expected to make additional payments of $10,000 on each anniversary of the agreement for up to ten years in order to complete the purchase option.

The seller will retain a 3% net smelter royalty (NSR) once the option is fully exercised.

The deal includes a provision for Renaissance to repurchase 2% of the NSR for $1m per 1% at a future date.