Northern Vertex Mining Corp. ("Northern Vertex") and Patriot Gold Corp ("Patriot") announced today the completion of the previously announced (May 12, 2016) agreement, whereby Northern Vertex would 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 of C$1,200,000 in cash and C$300,000 in Northern Vertex common shares valued at C$0.35 (857,140 shares) has been paid and the transaction is now complete.
Northern Vertex CEO, Dick Whittington commented: "It is gratifying to have this acquisition behind us. Owning 100% of the Moss Mine Property has already favorably impacted our funding efforts as the recently announced US$7.5 Million Convertible Debenture Private Placement attests to. The economics of the Moss Mine Project are compelling. In addition, 200,000 M&I resource ounces are available for mine life extension studies and property wide exploration potential is high. We are excited by the opportunities this affords us and look forward to transitioning Northern Vertex from a development company to a production company in due course."
Patriot Gold's President, Bob Coale said "This is an important and positive milestone for the shareholders of Patriot and Northern Vertex, and also the people of Bullhead City. The Moss Mine is a tremendous project which is now well positioned to proceed to commercial production, The teams at Patriot and Northern Vertex have worked very hard to bring the project this far, and we are encouraged that there is now a clear pathway forward for the Moss which aligns our interests. Patriot's royalty in the Moss Mine helps advance our core mission of acquiring and developing precious metals deposits in Arizona and Nevada."
The foregoing technical information contained in this news release has been approved by Mr. L.J. Bardswich, P. Eng., General Manager Moss Project, and a Qualified Person ("QP") for the purpose of National Instrument 43-101 (Standards of Disclosure for Mineral Projects).
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.