VANCOUVER, British Columbia, Dec. 30, 2013 (GLOBE NEWSWIRE) -- Nevada Sunrise Gold Corporation ("Nevada Sunrise" or the "Company") (TSX-V:NEV) is pleased to announce the signing of an amendment to a mining lease on the Golden Arrow property, located near Tonopah, Nevada.
Several claim blocks at Golden Arrow totaling 185 unpatented lode mining claims are held through a mining lease (the "Mining Lease") between Intor Resource Corp., a subsidiary of Nevada Sunrise, and Nevada Eagle Resources LLC ("Nevada Eagle"), a subsidiary of Newmont Mining Corporation. Past exploration has defined two centers of gold mineralization within the claims covered by the Mining Lease, known as the Hidden Hill and Gold Coin zones. In 2010, the Mining Lease was extended from its previous expiry date of December 31, 2011 for an additional five years to December 31, 2016, with additional one-year extensions of the Mining Lease at the option of Nevada Sunrise. The additional one year extensions under the previous Mining Lease terms resulted in a doubling of the advance royalty payment for each one year extension, beginning January 1, 2017.
The terms of the amendment to the mining lease are as follows:
- The advance minimum royalty payment (the "Advance Royalty Payment") is now reduced, from $50,000 to $25,000 per year, for the remainder of the term of the Mining Lease. The Mining Lease can be extended year-to-year at the Company's option by making the Advance Royalty Payments, which are capped at $25,000 per year;
- The Advance Royalty Payment due on January 1, 2014 has been deferred to July 1, 2014. Each subsequent annual Advance Royalty Payment of $25,000 is due and payable on January 1st of each succeeding calendar year;
- The production royalty, currently at 2.0%, is increased by one percentage point (1.0%) to 3.0% (the "Amended Production Royalty");
- Nevada Sunrise may purchase one percentage point (1.0%) of the Amended Production Royalty from Nevada Eagle for US$1.0 million at any time during the remaining term and any subsequent terms.
All other provisions of the mining lease continue in full force and effect.
Further information on the Golden Arrow property, please refer to the Company's website at www.nevadasunrise.com
FORWARD LOOKING STATEMENTS
All statements in this release, other than statements of historical fact, are "forward-looking information" with respect to Nevada Sunrise Gold Corporation. ("Nevada Sunrise") within the meaning of applicable Canadian securities laws, including statements that address future mineral production, reserve potential, exploration drilling, the future price of gold, potential quantity and/or grade of minerals, potential size of a mineralized zone, potential expansion of mineralization, the timing and results of future resource estimates, or other study, proposed exploration and development of our exploration properties and the estimation of mineral resources. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Nevada Sunrise to differ materially from those anticipated in such forward-looking information.
Such factors include, among others, risks related to the interpretation and actual results of exploration at Golden Arrow, reliance on technical information provided by third parties on any of our exploration properties, including access to historical information on the Golden Arrow property as well as specific historical data associated with and drill results from the property, current exploration and development activities; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; failure of Nevada Sunrise to complete anticipated work programs; labor disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration, as well as those factors discussed in the section entitled "Risk Factors" in the Company's Management Discussion and Analysis for the year ended September 30, 2012 dated which is available under Company's SEDAR profile at www.sedar.com.
Although Nevada Sunrise has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Nevada Sunrise disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking information.
Forward-looking statements are made as of the date hereof and accordingly are subject to change after such date. Except as otherwise indicated by Nevada Sunrise, these statements do not reflect the potential impact of any non-recurring or other special items or of any dispositions, monetizations, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after the date hereof. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans and allowing investors and others to get a better understanding of our operating environment. Nevada Sunrise does not undertake to update any forward-looking statements that are included in this document, except in accordance with applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of TSX Venture Exchange) accepts responsibility for the adequacy of accuracy of this release. The Securities of Nevada Sunrise Gold Corporation have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to the account or benefit of any U.S. person.