Fremont buys gold project in Nevada
TSX-V-listed Fremont Gold has entered into an option agreement to acquire the advanced-stage Cobb Creek gold project, in Elko county, Nevada, from fellow-listed Contact Gold.
Fremont CEO Blaine Monoghan said on Monday that the timing was right to augment its portfolio with advanced-stage projects, following its recent sale of the Gold Canyon project to NYSE- and TSX-listed McEwen Mining.
Monoghan commented in a media statement that Cobb Creek was underexplored and had not been drilled since 1992.
“With a historic resource, several promising exploration targets, and the possibility of a Carlin-type target, Cobb Creek is an exciting opportunity for Fremont and its shareholders.”
Fremont can acquire Cobb Creek by making payments totalling $370 000 over nine years and issuing 1.50-million common shares to Clover.
In addition to the payments to Clover, Fremont will assume responsibility for making payments totalling $120 000 over four years to a previous underlying property owner. Fremont also has to reimburse Clover for the related 2019/20 land maintenance costs, and a portion of the 2018/19 payments to the underlying owner.
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