Gold/silver explorer Ridgeline Minerals has entered into a transaction with Nevada Gold Mines (NGM), pursuant to which the joint venture between Barrick Gold and Newmont can acquire an interest in the Swift gold project; a district-scale (75 km²) land package located in the Cortez district of the Battle Mountain – Eureka Trend, in Nevada.
NGM must incur a minimum of $20-million (of which $4-million is guaranteed) in qualifying work expenditures over an initial five-year term to earn an initial 60% interest in Swift, and will have further options to increase its interest to a total 75%.
NGM will assume operatorship of the project immediately.
“Our singular focus as a company is to create value per share through discovery and we are delighted to partner with the NGM team as they apply their proven track record of discovery to the Swift gold project.
“Through this partnership, Ridgeline will significantly reduce the exploration risk inherent with deep drilling in Nevada, while retaining meaningful upside at Swift across all levels of project development moving forward,” said Ridgeline president CEO and director Chad Peters on Wednesday.
Within 15 days of signing the definitive agreement, NGM will reimburse a total of $372 763 to Ridgeline in consideration for recent overhead and work expenditures at Swift.
NGM and Ridgeline will each elect two representatives to a Swift technical steering committee, which will meet quarterly to review budgets and exploration progress.