CHEYENNE, Wyo., April 19,
2023 /PRNewswire/ -- U.S. Gold Corp. ("U.S.
Gold," the "Company," "we," "our" or "us") (NASDAQ: USAU), is
pleased to provide the details related to the CK Gold Project
royalty associated with the Wyoming Office of State Land and
Investments ("OSLI") mineral leases.
In commenting on the royalty rate for the CK Gold Project,
George Bee, President and CEO said,
"We would like to thank the Board of Directors and management of
OSLI for responding to our request to clarify aspects of the
Leases, including the royalty rate. Our team has extensive
experience working in many jurisdictions, and we can honestly say
that the degree of professionalism and service that OSLI, and all
state authorities, have shown as we advance the project is
exemplary,"
"We are committed to advancing the CK Gold Project in benefit of
the state, local community, and our shareholders. Based on our
December 1, 2021, prefeasibility
study figures, we anticipate that beyond the taxes, opportunities,
and jobs that we hope to create, we estimate that royalty payments
would exceed $30 million over the
life of the CK Gold Project mine. This represents a
significant boost for funding education initiatives in Wyoming," Mr. Bee concluded.
The CK Gold Project, previously known as Copper King, is located
on land owned by the state of Wyoming and leases the mineral rights from
OSLI. Leases 0-040828 and 0-040858 (the "Leases"), which lie within
the historic Silver Crown Mining District, were discovered in the
late 1800s and were last mined in the early 1900s. Conditions of
the Leases include royalty payments to the OSLI, earmarked for K-12
education within the state through the Common School Fund.
The proposed CK Gold Project, currently engaged in permitting
activities, is anticipated to be a revitalization of copper and
gold mining in the state of Wyoming after many years of dormancy. The
recovery of natural resources in Wyoming is an important part of the state's
economy, and, consequently, the state is well-equipped to monitor
and regulate the resource extractive industry. However, it was
recognized that the royalty conditions of the Leases associated
with the CK Gold Project did not take into consideration some of
the idiosyncrasies of the copper and gold, hard rock, extractive
industry and more specifically, the CK Gold Project.
Previously, we approached OSLI with a proposal for a royalty
rate which would both be comparable with other mineral-producing
states and protect the interests of the state. We volunteered to
finance an independent study, managed by OSLI, which provided
OSLI's Board of Directors with an independent recommendation on the
project and a proposed royalty rate applicable to the CK Gold
Project. On April 6, 2023, OSLI's
Board of Directors convened and approved the recommendation that
the OSLI staff proposed, fixing the royalty rate at 2.1% of the net
receipts that Gold King Corp., a wholly owned subsidiary of U.S.
Gold Corp., would receive.
About U.S. Gold Corp.
U.S. Gold Corp. is a publicly traded, U.S. focused gold
exploration and development company. U.S. Gold Corp. has a
portfolio of exploration properties. The CK Gold Project is located
in Southeast Wyoming and has a
Preliminary Feasibility Study technical report, which was completed
by Gustavson Associates, LLC. The Keystone exploration property is
on the Cortez Trend in Nevada. The
Challis Gold Project is located in Idaho. For more information about U.S. Gold
Corp., please https://www.usgoldcorp.gold/.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release are forward-looking
within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements may be identified by the use of
forward-looking words such as "anticipate," "believe," "forecast,"
"estimated," and "intend," among others. These forward-looking
statements include statements related to our CK Gold Project's
potential impact on the revitalization of copper and gold mining in
the state of Wyoming, and the
related economic and educational benefits to the state. There are a
number of factors that could cause actual events to differ
materially from those indicated by such forward-looking statements.
These factors include, but are not limited to, risks arising from:
market and other conditions, the prevailing market conditions for
metal prices and mining industry cost inputs, environmental and
regulatory risks, COVID-19 risks, changes in interpretations of
geological, geostatistical, metallurgical, mining or processing
information, risks faced by junior companies generally engaged in
exploration activities, whether U.S. Gold Corp. will be able to
raise sufficient capital to develop the CK Gold Project and
implement future drilling programs, the success or failure of
future drilling programs, and other factors described in the
Company's most recent Annual Report on Form 10-K, Quarterly Reports
on Form 10-Q, and Current Reports on Form 8-K filed with the
Securities and Exchange Commission, which can be reviewed at
www.sec.gov. The Company has based these forward-looking statements
on its current expectations and assumptions about future events.
While management considers these expectations and assumptions to be
reasonable, they are inherently subject to significant business,
economic, competitive, regulatory, and other risks, contingencies,
and uncertainties, most of which are difficult to predict and many
of which are beyond the Company's control. The Company undertakes
no duty to correct or update any information contained herein.
For additional information, please contact:
U.S. Gold Corp. Investor Relations
+1 800 557 4550
ir@usgoldcorp.gold
www.usgoldcorp.gold
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SOURCE U.S. Gold Corp.