Nevada Exploration Inc. (“NGE” or the “Company”) (TSX-V:NGE; OTCQB:NVDEF) reports that it has sold a 2% net smelter return royalty covering its current portfolio of Nevada gold projects (the “Royalty”) to Bronco Creek Exploration Inc., a wholly owned subsidiary of EMX Royalty Corporation (“EMX”), for a purchase price of $500,000 USD.
NGE may buy back a total of 1% of the Royalty on each project by: (1) purchasing 0.5% for $1,000,000 USD anytime prior to the 7th anniversary of the agreement; and (2) purchasing the remaining 0.5% for $1,500,000 USD anytime prior to production.
In the case that NGE options, farms out, or sells a project subject to the Royalty to a third party, such party shall be required to pay EMX annual advance royalties as follows: $20,000 on the first anniversary, $30,000 on the second anniversary, $40,000 on the third anniversary, and $50,000 on the fourth and subsequent anniversaries.
NGE used a portion of the proceeds from the Royalty sale to pay the Bureau of Land Management annual claim maintenance fees due September 1, 2022, for its Nevada claim holdings.
