TheNewswire / Emgold Mining Corporation (TSXV: EMR) ("Emgold" or the "Company"): is pleased to announce that it has received conditional approval from the TSX Venture Exchange (the "TSXV") for its acquisition of a 51% interest in the Golden Arrow Property (the "Property") from Nevada Sunrise Gold Corporation ("Nevada Sunrise").
Pursuant to an Amended Letter of Intent dated December 27, 2017 (see news release dated January 2018), Emgold plans to complete the acquisition of the 51% interest in the Property by issuing 2.5 million shares in the capital of the Company and paying CAD $282,000 in cash (of which CAD $67,000) has already been paid.
Emgold also has a first option to acquire a further 29% interest in the Property by issuing an additional 2.5 million shares and completing CAD $2,750,000 in exploration expenditures over a three year period. The Company has a second option to acquire the remaining 20% interest in the Property through a buyout based on a sliding scale, as outlined in the Company's news release dated January 4, 2018.
The Company's acquisition of any interests in the Property is conditional upon the Company raising the necessary funds to close the transaction. Further, the acquisition is subject to conditions from the TSXV, and closing cannot occur until final acceptance has been received from the TSXV.
Golden Arrow Property Details
The Property is located approximately 40 miles east of Tonopah, Nevada. The property consists of 357 contiguous unpatented and 17 patented lode mineral claims covering an area of approximately 7,030 acres (2,845 hectares). It is an advanced-stage gold and silver exploration property with a comprehensive exploration database including geochemical sampling, geophysics, and over 200,000 feet of reverse circulation and diamond core drilling.
To date, two main exploration targets have been drilled on the Property, focusing on bulk disseminated mineralization - the Gold Coin and the Hidden Hill deposits. Numerous other targets have been identified for exploration. Emgold's management believes there is potential for expansion of both the Hidden Hill and the Gold Coin resources, and for discovery of other bulk disseminated mineralization on the Property. In addition, historic underground mine workings lie along the Page Fault and other structures on the Property, indicating potential for vein style mineralization that has been subject to limited, if any, modern exploration to evaluate its potential.
Emgold is in the process of completing an updated National Instrument 43-101 ("NI 43-101") technical report on the Property. This report is being completed by Mine Development Associates of Reno, Nevada, and will be available on the Company's SEDAR profile at www.sedar.com when filed.
The scientific and technical information that forms the basis for portions of this news release was reviewed and approved by Robert Pease, PG, CPG, who is a qualified person as defined by NI 43-101.
