Nevada Sunrise Gold Corp. agreed to acquire the Coronado property, which is prospective for volcanogenic massive sulfide mineralization, kicking off a 90-day due diligence period.
The project consists of approximately 109 unpatented claims totaling about 882 hectares overlying an interpreted trend adjacent to the historical Big Mike copper mine in Nevada. Previous exploration indicated the occurrence of copper and cobalt mineralization, according to a June 7 news release.
Nevada Sunrise will pay US$1.4 million in cash, issue 2 million shares and spend at least US$1.1 million on exploration over four years. Upon execution of a definitive agreement, Nevada Sunrise will have the right to accelerate cash and share payments.
The vendor will also retain a 2.0% net smelter royalty, half of which Nevada Sunrise can repurchase for US$1.5 million, minus any advance royalty payments. An advance royalty payment of US$500,000 is due upon completion of a feasibility study.
The vendors will also have a right of first refusal to complete any additional staking, should it be required.
Nevada Sunrise plans to commission an airborne geophysical survey over the property as part of its due diligence efforts, with a definitive agreement subject to the results.
The company is also planning a concurrent private placement to raise up to US$500,000, comprising 3,333,333 units at 15 cents apiece. Proceeds will go toward exploration in Nevada and general working capital.
In early March, Nevada Sunrise secured options to acquire the Treasure Box and Boyer copper properties in Nevada.
