Northern Vertex Mining Corp. and Patriot Gold Corp announced today the signing of a binding agreement whereby Northern Vertex will purchase Patriot Gold's remaining 30% working interest in the Moss Gold/Silver Mine for C$1,500,000 plus the retention by Patriot of a 3% net smelter returns royalty. The consideration will consist of C1,200,000 in cash and $300,000 in Northern Vertex common shares valued at $0.35 (857,143 shares). The completion of the acquisition is subject only to customary stock exchange approval and final title inspection and is expected to finalize within two weeks.
Northern Vertex CEO, Dick Whittington commented: "This acquisition makes sense for both parties as it will simplify our management processes and streamline our development efforts to build a mine on the Moss Mine property. The clarity around the ownership structure will now make financing the project easier as well and give our shareholders a 100% ownership stake in both the planned Moss mine and the Moss property as a whole. As the Feasibility Study has outlined, the economics of the Moss Mine Project are compelling and this acquisition should help transform Northern Vertex from a development company to a production company over the next two years. We are looking forward to delivering on that vision and are pleased to welcome Patriot as a significant new shareholder."
Patriot Gold's President, Bob Coale said "After nearly 15 years of ownership of the Moss Mine, Patriot is gratified to see that it is well on track to commercial production. Seldom do junior mining companies achieve the success that Patriot has experienced. It makes strong financial sense for the property to be under the control of a single operator and we believe that the benefit to our shareholders of our royalty interest will, in the long run, be significant. We will not only gain from our initial investment in the Moss Mine, but also from the substantial exploration and development work performed by Northern Vertex. The potential on-going cash flow to Patriot from gold production at the Moss Mine will allow us to continue our core mission of acquiring and enhancing additional precious metal deposits in Arizona and Nevada."
This announcement may contain forward-looking statements which involve risks and uncertainties that include, among others, limited operating history, limited access to operating capital, factors detailed in the accuracy of geological and geophysical results including drilling and assay reports; the ability to close the acquisition of mineral exploration properties, and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. More information is included in the company's filings with the Securities and Exchange Commission, and may be accessed through the SEC's web site at http://www.sec.gov.