British Columbia-based StrikePoint Gold has entered into definitive agreements with subsidiaries of gold mining major Newmont Corporation to acquire the Northumberland gold project, in Nevada, for an upfront cash consideration of $70-million and contingent payments of $50-million.

Northumberland is a substantial, past producing gold deposit largely located on private land, which potentially simplifies the permitting process.

StrikePoint also agreed to make two additional contingent cash payments of $25-million each in the future, the first within 120 days after completion of a feasibility study and the second within 120 days after achievement of certain commercial production milestones at Northumberland.

Northumberland currently has a mineral resource estimate of 2.86-million gold-equivalent ounces in the indicated category and 1.57-million gold-equivalent ounces in the inferred category - contained within 67-million tonnes and 31-million tonnes, respectively.

The project has not been explored since 2010 and has numerous untested targets, including extensions of the known mineralisation.

StrikePoint advises that five seperate drill permits are currently in place and are expected to facilitate rig mobilisation and efficient exploration on both private and public land following closing of the transaction, subject to applicable permit transfer or replacement requirements.

"Acquiring Northumberland is a transformational step for StrikePoint. We will be focused on unlocking the potential of the project going forward and advancing exploration and development on site. There are near-pit and in-pit opportunities for resource expansion, as well as regional targets that can be tested," says CEO and president Michael Allen.

Upon completion of the deal, Alan Pangbourne will join StrikePoint as chairperson, with current chairperson Shawn Khunkhun due to remain on the board in another capacity.

Pangbourne brings to the position more than 35 years' experience in the global mining industry, having worked most recently as president and CEO of Guyana Goldfields through to its sale to Zijin Mining Group. He previously worked as COO of SSR Mining, South America projects VP for Kinross Gold Corporation and in various senior roles at BHP.

Pangbourne is currently also a nonexecutive director at OceanaGold, where he chairs the technical committee.