Bravada Amends Quito Gold Property Agreement with Yamana
April 30, 2018
Vancouver, British Columbia - (Newsfile Corp. - April 30, 2018) - Bravada Gold Corporation through its wholly-owned US subsidiary Bravo Alaska, Inc. (TSXV: BVA) (OTCQB: BGAVF) (FSE: BRTN) (collectively "Bravada") and Yamana Gold Inc. through its wholly-owned US subsidiary Meridian Minerals Corp. (collectively "Yamana") have agreed to amend the earn-in agreement for the Quito Property, located along the Austin Gold trend in central Nevada. The amendment will eliminate a "Claw-back" provision that allowed Yamana to re-acquire a 51% ownership in Quito after earn-in by Bravada of a 70% working interest in the property with all other terms remaining constant. As consideration for this amendment, Yamana will receive 1,000,000 common shares in Bravada and warrants to purchase 1,000,000 common shares at Cd$0.15 for a period of three (3) years. The amendment is subject to TSX Venture Exchange approval.
- Bravada can earn a 70% interest in the Quito Property by conducting US$2.5MM in work expenditures by 2020, of which approximately 50% has been spent to date and with additional work expenditures not becoming due until December 31, 2019.
- Within 60 days after Bravada's earn-in, Yamana can either: 1) elect to participate in further exploration and development expenditures at 30% or 2) elect to surrender its 30% working interest in favour of Bravada in consideration of receipt of a 2% NSR royalty and receipt of US$500,000 as either cash or an equivalent value of shares of Bravada at Bravada's option. No other royalties encumber the property.
President Joe Kizis commented, "The "Claw-back" provision has hindered interest by potential joint-venture partners interested in funding exploration and development work on this Project in concert with Bravada. Yamana retains its working interest or royalty rights and nowhas an opportunity to indirectly participate in Bravada's full portfolio of eleven Nevada properties through its holdings of Bravada shares. A drilling permit was recently received, allowing exploration of the property in 2018."
The geological setting at Quito resembles many of Nevada's largest and richest Carlin-style gold deposits. Mineralization is concentrated in Paleozoic-age carbonate sediments, with the highest grades being associated with fault intersections along the axis of a property-scale anticline. The Quito Extension target (see figure below) was developed by 3D computer modeling of historic drill-hole assays and surviving blast-hole data and shows a strong southeasterly plunge of the highest-grade gold mineralization, much of which assayed 15g/t Au in the Quito pit. Other targets were also advanced to a drill-ready stage and are being prepared for permitting.
Quito is a Carlin-type gold property consisting of 342 lode claims (~2,700 hectares). From 1986 through 1989, Quito reportedly produced 174,460 ounces of gold at a grade of 5.92 grams per ton (g/t) from a deposit consisting of 1.7 million short tons at an average gold grade of 6.34 g/t. Note that Bravada has not independently confirmed either the past production or any possible remaining resources, and these historic figures should not be relied upon.
Bravada is an exploration company with offices in Reno and a portfolio of 11 high-quality properties in Nevada, one of the best mining jurisdictions in the world. During the past 12 years the Company has successfully identified and advanced properties that have the potential to host high-margin deposits while successfully attracting partners to fund later stages of project development. Currently, exploration expenses on three of its Nevada properties are being funded by partners. Eight of the Company's properties have been developed through exploration by Bravada and are drill-ready, or close to being so, with exploration to continue throughout 2018 subject to funding availability.
Joseph Anthony Kizis, Jr. (AIPG CPG-11513, Wyoming PG-2576) is the Qualified Person responsible for reviewing and preparing the technical data presented in this release and has approved its disclosure.
On behalf of the Board of Directors of Bravada Gold Corporation Joseph A. Kizis, Jr., Director, President, Bravada Gold Corporation
For further information, please visit Bravada Gold Corporation's website at bravadagold.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. These statements are based on a number of assumptions, including, but not limited to, assumptions regarding general economic conditions, interest rates, commodity markets, regulatory and governmental approvals for the company's projects, and the availability of financing for the company's development projects on reasonable terms. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, the timing and receipt of government and regulatory approvals, and continued availability of capital and financing and general economic, market or business conditions. Bravada Gold Corporation does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.