The company moves to the Tonopah mining district
Pershing Resources Company, Inc., a Reno-based exploration company, has acquired 100% of the mineral rights in the Divide Gold and Silver project in the Tonopah mining district in central Nevada, according to the press release.
The Divide Project is 7 miles south of Tonopah and 16 miles north of Goldfield in the Walker Lane mineral sector. According to data compiled by the Nevada Bureau of Mines and Geology, past production from Tonopah and Goldfield combined is more than 7 million ounces of gold and 200 million ounces of silver.
It is also among more than 50 million ounces of gold and 437 million ounces of silver previously mined from Walker Lane Trend, according to the press release. The Divide Project includes at least three historically documented gold and silver mineral occurrences and is located about 2.5 miles northeast of Pershing Resources’ Klondyke Project, the statement said.
On November 21, 2019, the Company entered into a 20-year lease / purchase option agreement on unpatented claims that covers approximately 25 square miles in the Divide Mining District with Mountain Gold Claims LLC, (MGC ) and Blackrock Exploration, LLC, (BRE), as 50/50 partners of the agreement.
Under the sharing arrangement, the company has paid an advance royalty of two million restricted common shares and a lease payment of $ 5,000 and is required to pay advance annual royalties and work commitment expenses. . The anticipated annual royalty payments will rise to $ 10,000 in the second year and $ 15,000 in the third year, and will continue to climb to a cap of $ 100,000 after the fifteenth year, according to the press release.
Annual work commitment expenses will start at $ 5,000 in the first year of the division agreement and will be capped at $ 50,000 in the third year. MGC & BRE will retain the right to a quarterly production royalty equal to 3% of the net smelter return royalty on the division project as long as the division agreement remains in effect, according to the press release.
The company has the right to purchase the first 1 percent of the NSR royalties for $ 1,000,000 before or before the fifth anniversary on November 21, 2024 and, the company has the right to purchase a second 1 percent of the NSR royalties for $ 2,000,000 by or before the tenth anniversary on November 21, 2029.
According to the press release, the company may terminate the MGC agreement after giving written notice of termination to MGC & BRE at least 30 days prior to each anniversary date of the agreement.
Pershing Resources is a precious and base metals exploration company with a growing portfolio of exploration projects in Arizona and Nevada. According to the press release, the company is focused on the exploration and development of its 100% owned New Enterprise and Mohave-Standard properties, collectively referred to as the New Enterprise Project.