Pershing Gold completes $1.1M deal for Relief Canyon mineral rights, mining claim
LAKEWOOD, Colorado — Pershing Gold Corporation in late August announced it had completed the exercise of a right of first offer to acquire all of the Newmont Mining royalty and other rights on specified lands around the Relief Canyon Mine project in Northern Nevada.
Pershing Gold paid $1.1 million to complete the transaction, officials said.
“This transaction is another significant step in securing Pershing Gold’s land package around Relief Canyon,” according to a news release from Lakewood, Colorado-based Pershing Gold Corporation. “Pershing Gold secured the lands in the immediate vicinity of Relief Canyon through the transaction announced in January of 2015.”
The deal provides Pershing Gold with “enhanced access to expansion opportunities through its holdings near Relief Canyon,” officials said.
“This transaction gives Pershing Gold secure tenure throughout our 45 square mile land position and relieves the Company’s work commitments to Newmont on this highly prospective ground,” Stephen Alfers, Pershing Gold’s Chairman and CEO, said in a statement. “It unlocks the value of the land through the elimination of impediments to exploration and development, and it increases the potential profitability from production on these areas through the extinguishing of royalties, clawbacks and other burdens.
“This ground contains known targets we have developed in the last two years. The transaction allows the Company to advance known targets, increasing the potential for discovery of satellite deposits that could be brought into a near-term production profile at Relief Canyon upon commencement of operations.”
The transaction reportedly includes the acquisition of Newmont Mining leases and claims lands located in the vicinity of the Relief Canyon Mine — located east of Lovelock, Nevada — and covers 4,235 acres of fee mineral rights and mining claims in Pershing County.
The unanimous approvals Wednesday came despite state leaders promising to tighten up requirements for Nevada’s tax abatements and incentives for future companies.