May 12, 2016, Vancouver, B.C. - Northern Vertex Mining Corp. (TSX.V:NEE) (the "Company") and Patriot Gold Corp (OTC:PGOL) ("Patriot") announced today the signing of a binding agreement whereby Northern Vertex will 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 will consist of C$1,200,000 in cash and C$300,000 in Northern Vertex common shares valued at C$0.35 (857,140 shares). The completion of the acquisition is subject only to customary stock exchange approval and final title inspection and is expected to finalize within two weeks.
Northern Vertex CEO, Dick Whittington commented: "This acquisition makes sense for both parties as it will simplify our management processes and streamline our development efforts to build a mine on the Moss Mine property. The clarity around the ownership structure will now make financing the project easier as well and give our shareholders a 100% ownership stake in both the planned Moss mine and the Moss property as a whole. As the Feasibility Study has outlined, the economics of the Moss Mine Project are compelling and this acquisition should help transform Northern Vertex from a development company to a production company. We are looking forward to delivering on that vision and are pleased to welcome Patriot as a significant new shareholder."
Patriot Gold's President, Bob Coale said "After nearly 15 years of ownership of the Moss Mine, Patriot is gratified to see that it is well on track to commercial production. Seldom do junior mining companies achieve the success that Patriot has experienced. It makes strong financial sense for the property to be under the control of a single operator and we believe that the benefit to our shareholders of our royalty interest will, in the long run, be significant. We will not only gain from our initial investment in the Moss Mine, but also from the substantial exploration and development work performed by Northern Vertex. The potential on-going cash flow to Patriot from gold production at the Moss Mine will allow us to continue our core mission of acquiring and enhancing additional precious metal deposits in Arizona and Nevada."
About Northern Vertex:
Northern Vertex Mining Corp. is a Canadian based exploration and mining company focused on the reactivation of the Moss Mine Gold-Silver Project located in NW Arizona, USA where the Company has recently earned a 70% property interest and will form an LLC joint venture with Patriot Gold Corp. The Moss Mine Gold-Silver Project is an epithermal, brecciated, low sulphidation quartz-calcite vein and stockwork system which extends over a strike length of 1,400 meters and has been drill tested to depths of 370 meters vertically. It is a potential heap leach, open pit project that has been advanced to the Feasibility Study stage to ensure that technical, economic, permitting and funding requirements are met prior to proceeding with the development of the mine. The Company's management comprises an experienced management team with a strong background in all aspects of acquisition, exploration, development, operations and financing of mining projects worldwide. The Company is focused on working effectively and respectfully with our stakeholders in the vicinity of the historical Moss Mine and enhancing the capacity of the local communities in the area.
About Patriot Gold:
Patriot Gold Corp. is a precious metals exploration and production company with the mission to discover and develop significant gold and silver assets in Arizona and Nevada. Patriot holds interests in four projects consisting of the Moss project in Arizona and three in Nevada (Bruner, Vernal, and Windy Peak).
J.R.H. (Dick) Whittington, President & CEO
Northern Vertex Mining Corp.
Bob Coale, President & Director
Patriot Gold Corp.
For further information about Northern Vertex, please visit www.northernvertex.com
or contact Investor Relations at: 604-601-3656 or at 1-855-633-8798.
For further information about Patriot Gold Corp, please visit www.patriotgoldcorp.com
or contact Investor Relations at: 702-456-9565.
Neither TSX Venture Exchange nor 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.
Cautionary Note About Forward Looking Information:
This news release contains statements about our future business and planned activities. These are "forward-looking" because we have used what we know and expect today to make a statement about the future. Forward-looking statements including but are not limited to comments regarding the timing and content of upcoming work and analyses. Forward-looking statements usually include words such as may, intend, plan, expect, anticipate, believe or other similar words. We believe the expectations reflected in these forward-looking statements are reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our business or events that happen after the date of this news release. You should not place undue reliance on forward-looking statements. As a general policy, we do not update forward-looking statements except as required by securities laws and regulations.
Cautionary Note to US Investors:
Some of the Company's public filings use the terms "Measured", "Indicated", and "Inferred" resources. US investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. US investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. US Investors are also cautioned not to assume that all or any part of a Mineral Resource is economically or legally mineable.
2016 number 06