LAKEWOOD, Colo., Jan. 19, 2015 /PRNewswire/ -- Pershing Gold
Corporation (OTCQB:PGLC) ("Pershing" or the "Company") is pleased to
announce that it has acquired from Newmont USA Limited ("Newmont") (NYSE:NEM) the
exclusive mining and surface use rights to approximately 1,600
acres of new long-term mining leases and 74 unpatented lode mining
claims comprising approximately 1,300 acres. The purchase price
paid to Newmont was US $6 million.
This transaction also includes the acquisition of a new 20-year
mining lease from New Nevada Lands, LLC, and New Nevada
Resources, LLC.
These mining leases and claims cover lands located adjacent to
Pershing's Relief Canyon Mine in
Pershing County, Nevada.
Pershing formerly held these lands
and claims under a Minerals Lease and Sublease with Newmont. The
transaction involved the conversion of a portion of the mineral
sublease to new long-term mining leases that substantially upgrades
Pershing's mining rights and
surface use rights. The transaction consolidates Pershing's 100% owned Relief Canyon Mine with
Newmont's mineral interests in adjacent properties. In addition,
the deal reduces the potential royalty and terminates Newmont's
back-in joint venture rights and other contract rights to the
land.
As shown in Figure 1, the acquired lands and claims are adjacent
to and near the Relief Canyon gold deposit, which is mainly located
on mining claims owned by Pershing's wholly owned subsidiary, Gold
Acquisition Corp. The Gold Acquisition Corp. mining claims are not
affected by this deal.
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The transaction gives Pershing
increased control over ground adjacent to the Relief Canyon Mine
that the Company believes is prospective. Pershing estimates that about 27% of its
existing NI 43-101 resource estimate occurs on the lands acquired
in this transaction. The Relief Canyon deposit is open and largely
untested on the acquired lands west and south of the current
open-pit mine. The Company believes that future exploration core
drilling on these lands has significant potential to increase the
size of the Relief Canyon gold deposit. In the transaction
Pershing acquires surface rights
to areas suitable for new and expanded mine support facilities,
including waste rock storage areas.
As part of this transaction, Newmont and Pershing amended the 2006 Minerals Lease and
Sublease, which now covers only the lands and claims shown in blue
on Figure 1. Pershing remains the
lessee of the mining claims and the sublessee of the lands leased
by Newmont under a new long-term mining lease. The amended Minerals
Lease and Sublease establishes a new US $2.6
million exploration work commitment to be completed by the
seventh anniversary of the effective date of the amendment.
Pershing has already satisfied
approximately US $2.4 million of this
work commitment.
"With this transaction, Pershing paves the way to significantly expand
the Relief Canyon Mine," stated Stephen D.
Alfers, Pershing's Chairman
and CEO. "Not only did we gain complete control of the gold
discovered to date on the acquired lands, we know that the original
Relief Canyon deposit extends into the acquired lands, and with
additional drilling we expect to expand the gold resource on these
lands." Alfers added, "Moreover, our new 20-year mining lease
secures our mining rights well into the future and achieves control
over where we can locate future mine facilities and optimize
expanded mine plans. We appreciated working with Newmont and our
new lessor, New Nevada Lands, in consummating this landmark deal
and look forward to continuing to develop our strong working
relationships with both companies."
About Pershing Gold Corporation
Pershing Gold is an emerging Nevada gold producer on a fast-track to
re-open the Relief Canyon Mine, which includes three open-pit mines
and a state-of-the-art, fully permitted and constructed heap-leach
processing facility. Pershing Gold is currently permitted to resume
mining at Relief Canyon under the existing Plan of Operations.
Pershing Gold's landholdings cover approximately 25,000 acres
that include the Relief Canyon Mine asset and lands surrounding the
mine in all directions. This land package provides Pershing Gold
with the opportunity to expand the Relief Canyon Mine deposit and
to explore and make new discoveries on nearby lands
Cautionary Note to United States Investors Regarding
Estimates of Resources
We use certain terms, or refer to reports that use these terms,
in this press release such as "resource", that are defined in
Canadian National Instrument 43-101; however these terms are not
recognized under the U.S. SEC Industry Guide 7. U.S. investors
are cautioned not to assume that any or all of any resource is
economically or legally mineable or that this resources will ever
be converted into reserves. U.S. investors are urged to
consider closely the disclosure in our Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q and other SEC filings. You can
review and obtain copies of these filings from the SEC's website at
http://www.sec.gov/edgar.shtml.
Legal Notice and Safe Harbor Statement
This press release contains "forward-looking statements" within
the meaning of Section 21E of the Securities Exchange Act of 1934.
All statements, other than statements of historical fact,
including, without limitation, those with respect to the
objectives, plans and strategies of the Company set forth herein
including the planned reopening and recommissioning of the Relief
Canyon mine and processing facilities, anticipated additional
drilling and other exploration on Pershing Gold's Relief Canyon
properties including properties newly acquired from Newmont and
under new long-term mining leases, belief that the newly acquired
and leased properties are prospective, anticipated expansion and
upgrade of the Relief Canyon deposit as a result of drilling,
increased control over mining and surface uses on lands adjacent to
the Relief Canyon mine, improved rights to lands subject by new
mining leases, potential for expanded and optimized mine plans
resulting from the reported transactions, interpretations of
exploration results and other geologic information at Relief
Canyon, further development of strong working relationships with
Newmont and the Company's new lessor, and those preceded by
or that include the words "believes," "expects," "given,"
"targets," "intends," "anticipates," "plans," "projects,"
"forecasts" or similar expressions, are "forward-looking
statements." Although the Company's management believes that such
forward-looking statements are reasonable, it cannot guarantee that
such expectations are, or will be, correct. These forward-looking
statements involve a number of risks and uncertainties, which could
cause the Company's future results to differ materially from those
anticipated. Potential risks and uncertainties include, among
others, inability to obtain external financing to fund the
development of plans for and the reopening and commencement of
production at the Relief Canyon Mine, planned exploration, or to
maintain property rights; unfavorable results of future drilling on
the newly acquired and leased lands; interpretations or
reinterpretations of geologic information or unfavorable
exploration results that could negatively affect estimates of
resources or future mine plans; delay or inability to obtain
permits required for planned production, including permits to mine
the deposit below the water table, for exploration and for
potential surface uses and other activities; failures to comply
with mining lease requirements; general economic conditions and
conditions affecting the industries in which the Company operates;
the uncertainty of regulatory requirements and approvals; decreases
in gold and other mineral and commodity prices; risks of junior
exploration and pre-production activities; and maintenance of
important business relationships including those with Newmont and
the Company's new lessor. Additional information regarding the
factors that may cause actual results to differ materially from
these forward-looking statements is available in the Company's
filings with the SEC including the Annual Report on Form 10-K for
the year ended December 31,
2013. The Company assumes no obligation to update any of the
information contained or referenced in this press release.
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SOURCE Pershing Gold Corporation