New Jersey Mining Company Sells Its Toboggan Project to Hecla Mining Company for $3-Million
May 21 2018 - 9:00AM
New Jersey Mining Company (OTCQB:NJMC) (“NJMC” or the “Company”)
announced today that it has sold its Toboggan project to Hecla
Silver Valley, a wholly-owned subsidiary of Hecla Mining Company
(NYSE:HL) (“Hecla”) for $3-million cash.
New Jersey’s Toboggan property sold to Hecla Silver Valley was
comprised of the surface rights to the Little Baldy patented claims
and 106 unpatented mining claims totaling more than 2,100 acres
along a northwest-trending lineament of gold in quartz vein
prospects within North Idaho’s Murray Gold Belt. The property is
located three miles north of NJMC’s Golden Chest Mine, which is
currently producing gold from both open pit and underground
operations.
The Toboggan project was a joint venture between Newmont Mining
Company and NJMC for the 2008 through 2010 exploration seasons,
during which Newmont explored and analyzed multiple prospects. The
entire data base generated by Newmont and NJMC was included in the
sale to Hecla Silver Valley.
In addition to the monetary consideration, the sale terms
include the establishment of a defined “Area of Interest”
surrounding the Toboggan project, and within the Toboggan Trend.
NJMC also retains a 2-percent Net Smelter Returns (NSR) royalty on
the Toboggan property, of which Hecla Silver Valley has the right
to buy back 1-percent for $1-million.
Hecla also participated in a private placement, purchasing
$500,000 of restricted NJMC common stock for $0.13 per unit, with a
unit comprised of one share of common stock and a half warrant.
Each full warrant allows for the purchase of one share of common
stock for $0.22 per share and expires three years from the date of
participation.
NJMC CEO and President John Swallow stated, “We view this
transaction as a win-win not only for Hecla and New Jersey, but
also for the Murray Gold Belt and the future of the district.
This transaction is a testament to the long-term diligence of our
team and the potential of the Murray Gold Belt. We welcome
Hecla as a fellow regional landholder and as a NJMC
shareholder.”
NJMC controls more than 3,500 acres along the Murray Gold Belt –
including the producing Golden Chest Mine. Gold was first
discovered in the Coeur d’Alene District within the Murray Gold
Belt in 1879, but by 1888 mining declined as the center of activity
shifted to the Silver Valley following the discovery of the Bunker
Hill, Sunshine, Lucky Friday, and other iconic regional mines. The
rebirth of the long-forgotten Murray Gold Belt has been led by NJMC
and its redevelopment of the Golden Chest Mine.
About New Jersey Mining Company
New Jersey Mining Company is headquartered in North Idaho, where
it is producing gold at its Golden Chest Mine. NJMC has established
a high-quality, early to advanced-stage asset base in three
historic mining districts of Idaho and Montana, developed with more
than $50-million by NJMC and other companies. The Company’s
objective is to use its considerable in-house skill sets to build a
portfolio of mining and milling operations, with a longer-term
vision of becoming a mid-tier producer. Management is shareholder
focused and owns more than 17-percent of NJMC common stock.
The Company’s common stock trades on the OTC-QB Market under the
symbol “NJMC.”
For more information on New Jersey Mining Company go to
www.newjerseymining.com or call:
Monique Hayes, Corporate Secretary/Investor RelationsEmail:
monique@newjerseymining.com(208) 625-9001
Forward Looking Statements
This release contains “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended that are intended to be covered by the safe
harbor created by such sections. Such statements are based on good
faith assumptions that New Jersey Mining Company believes are
reasonable but which are subject to a wide range of uncertainties
and business risks that could cause actual results to differ
materially from future results expressed, projected or implied by
such forward-looking statements. Such factors include, among
others, the potential of the Murray Gold Belt or the Company’s
plans to expand future exploration and resource development, the
risk that the mine plan changes due to rising costs or other
operational details, the risks and hazards inherent in the mining
business (including risks inherent in developing mining projects,
environmental hazards, industrial accidents, weather or
geologically related conditions), changes in the market prices of
gold and silver and the potential impact on revenues from changes
in the market price of gold and cash costs, a sustained lower price
environment, as well as other uncertainties and risk factors.
Actual results, developments and timetables could vary
significantly from the estimates presented. Readers are cautioned
not to put undue reliance on forward-looking statements. NJMC
disclaims any intent or obligation to update publicly such
forward-looking statements, whether as a result of new information,
future events or otherwise
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