Vancouver, British Columbia - August 10, 2017 (Newsfile Corp.) (Investorideas.com Newswire) Fremont Gold Ltd. (TSXV: FRE) (the "Company") is pleased to announce that it has entered into an option agreement with Mr. John Bernt, a Wyoming-based geologist who controls 48 unpatented and 4 patented mining claims (the "Property"). The Property comprises approximately 389 hectares and is located in Elko County 104 miles by road north of Elko City in Northeast Nevada. The Property is in the historic Jarbidge mining district which produced 355,000 oz of gold and 1,600,000 oz of silver from approximately 800,000 tons of ore between 1918 and 1932.1
Under the terms of the option agreement, the Company can earn a 100% interest in the Property, subject to 2% Net Smelter Return Royalty in favour of Mr. Bernt, by making an initial payment of US$50,000, a subsequent US$25,000 payment in December 2018, and then quarterly cash payments beginning July 31, 2018. The quarterly payments start at US$20,000 and increase by US$2,000 per quarter for a period of 5 years, for total consideration of US$635,000 A final payment of US$5M (2/3 of which is payable in shares) is due at the end of 5 years, but can be deferred for an additional 18 months, by payment of US$1,000,000.
In addition to the payments, the Company must complete the following work in order to exercise the option on the Property:
The Company can accelerate the exercise of the option and acquire 100% of the Property at any time, by making the final $5 million payment, in which case the payments and work commitments not yet due will be waived.
The option agreement is subject to prior TSXV acceptance and further details on the Property will be contained in a NI 43-101 compliant report, which is currently being prepared for the Company.
CEO Dennis Moore stated, "The Jarbidge district in Nevada is one of the last low-sulfidation, epithermal districts not being actively explored in the state. This type of mineralization has the potential to host what have been termed "bonanza-grade" deposits, which makes the Property a compelling acquisition for the Company. The best examples of this style of mineralization are the Midas mine in Elko County and the former Sleeper mine located in Humboldt County, both in northern Nevada."
About Fremont Gold Ltd.
Fremont Gold Ltd. holds exclusive leasing rights to the Hurricane Project, a gold exploration project located in Lander County, Nevada, and owns the Goldrun Project in Humboldt County, Nevada. The Company's strategy is to conduct exploration on its existing projects and to build a quality portfolio of gold projects in Nevada using the collective exploration expertise of the new management team. Further information regarding the Hurricane Project and Goldrun Project are described in the filing statement of the Company dated May 29, 2017, available at www.sedar.com.
For further information, please contact:
President & Chief Executive Officer
Fremont Gold Ltd.
#1500 - 409 Granville Street, Vancouver
Telephone: (778) 772-9892
Neither the TSX Venture Exchange, not its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may include forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements except as required under the applicable laws.1. "MIneral Resources of Elko County" by Daphne DeLapointe of the Nevada Bureau of Mines and Geology, 1991.
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