Fremont to Sell Gold Canyon Project to McEwen Mining Inc.
Friday, August 16th, 2019
Fremont Gold Ltd. (TSXV: FRE) (FSE: FR2) (OTC Pink: USTDF) (“Fremont” or the “Company”) is pleased to announce that it is selling its rights and interest in the Gold Canyon project, located in Eureka County, Nevada, to McEwen Mining Inc. (“McEwen”).
Fremont has entered into an asset purchase agreement (the “Agreement”) with McEwen to sell its rights and interest in the Gold Canyon Option Agreement, entered into with Nevada Select Royalty, Inc., a wholly-owned subsidiary of Ely Gold Royalties Inc. (see news release dated January 11, 2018), in exchange for 300,000 McEwen common shares.
“Selling Gold Canyon appreciably increases Fremont’s financial flexibility,” said Blaine Monaghan, CEO of Fremont. “It gives us the ability to generate a significant non-dilutive capital infusion, through the sale of any McEwen shares, which will be helpful as we evaluate opportunities that can add immediate and long-term shareholder value. Further, the sale demonstrates management’s ability to generate and maximize the returns from the present portfolio.”
Fremont continues to evaluate opportunities to acquire an advanced-stage gold project that has the potential to host an economic deposit with a minimum of 1.0 million ounces of gold in the Western U.S.
The common shares of McEwen to be issued under the Agreement will be subject to a 4 month hold period from the date of closing and is subject to regulatory approval. The Agreement is expected to close by August 23, 2019.http://www.fremontgold.net