Ridgeline Minerals (TSXV: RDG) announced on Wednesday that it has executed an earn-in agreement with Nevada Gold Mines (NGM), a joint venture between Barrick Gold and Newmont Corp., with respect to its Swift gold property in Nevada.
The Swift project is a district-scale (75 km²) land package located in the Cortez district of the Battle Mountain – Eureka Trend. Several multi-million ounce producing gold mines (past and present) including the Pipeline, Cortez Hills, Fourmile and Goldrush deposits are located downtrend of Swift along the Cortez structural corridor.
Ridgeline’s 2020 Phase I drill program intersected typical Lower Plate carbonate host rocks of the Cortez district including the Wenban formation, the primary host to all gold deposits above 5 million ounces in the area.
“Our singular focus as a company is to create value per share through discovery, and we are delighted to partner with the Nevada Gold Mines team as they apply their proven track record of discovery to the Swift gold project,” Chad Peters, Ridgeline’s president and CEO commented.
Pursuant to the earn-in transaction, NGM may acquire an initial 60% interest in the project a minimum of $20 million (of which $4 million is guaranteed) in qualifying work expenditures over a five-year period. The JV company will serve as the project operator immediately.
NGM will also have further options to increase its interest to 75%. These include a one-time option to earn a 10% interest by sole-funding an additional $10 million in work expenditures by the end of 2029, plus a one-time option for a 5% interest by arranging to finance Ridgeline’s portion of debt should the JV decide to proceed with mine development.
Shares of Ridgeline Minerals were down 1.0% as of 12:20 p.m. EDT. The Nevada-focused gold explorer has a market capitalization of C$26.7 million.