Pershing Resources Company, Inc., a Reno-based exploration company, acquired a 100 percent mineral rights interest in the Divide Gold and Silver Project within the Tonopah Mining District of Central Nevada, according to the press release.
The Divide Project is 7 miles south of Tonopah, and 16 miles north of Goldfield, within the Walker Lane Mineral Trend. According to data compiled by the Nevada Bureau of Mines and Geology, past production from Tonopah and Goldfield combined is reported to be greater than 7 million ounces of gold and 200 million ounces of silver.
It is also part of the more than 50 million ounces of gold and 437 million ounces of silver previously mined from the Walker Lane Trend, according to the press release. The Divide Project includes at least three historically documented gold and silver mineral occurrences and is located approximately 2.5 miles northeast of Pershing Resources’ Klondyke Project, the release said.
On Nov. 21, 2019, the company entered into a 20-year term lease/purchase option agreement on unpatented claims that covers approximately 25 square miles within the Divide Mining District with Mountain Gold Claims LLC, (MGC) and Blackrock Exploration, LLC, (BRE), as 50/50 partners to the agreement.
Under the Divide Agreement, the company has made an advanced royalty payment of two million restricted common shares and a lease payment of $5,000 and, is required to make annual advanced royalty payments and work commitment expenditures. Annual advanced royalty lease payments will escalate to $10,000 for the second year, and $15,000 in the third year, and will continue to escalate to a cap of $100,000 after the fifteenth year, according to the press release.
Annual work commitment expenditures will begin at $5,000 in the first year of the Divide Agreement and are capped at $50,000 by the third year. MGC &BRE will retain the right to a quarterly production royalty payment equal to 3 percent of the Net Smelters Return Royalty on the Divide Project so long as the Divide Agreement remains in effect, according to the press release.
The company has the right to purchase the first 1 percent of the NSR Royalties for $1,000,000 by or before the fifth anniversary on Nov. 21, 2024 and, the company has the right to purchase a second 1 percent of the NSR Royalties for $2,000,000 by or before the tenth anniversary on Nov. 21, 2029.
The company can terminate the MGC Agreement upon giving written notice of termination to MGC &BRE at least 30 days prior to each anniversary date of the agreement, according to the press release.
Pershing Resources is a precious and base metals exploration company with a growing portfolio of exploration projects in Arizona and Nevada. According to the press release, the company is focused on the exploration and development of its 100 percent owned New Enterprise and Mohave-Standard properties, collectively referred to as the New Enterprise project.