VANCOUVER, Feb. 5, 2013 /CNW/ - Altan Nevada Minerals Limited, TSX.V: ANE ("Altan Nevada" or the "Company") announces that it has entered into a twenty year Mining Lease and Option to Purchase Agreement (the "Agreement") with Avidian Gold US Inc. ("Avidian"), a private Nevada corporation actively engaged in the exploration of intrusive-related gold-copper deposits in Nevada, on 25 out of 204 unpatented lode mining claims covering approximately 11.3% of Altan Nevada's Radar gold-silver project (the "Radar Claims") located in Nye and Minerals Counties, Nevada.
Under the terms of the Agreement, dated January 1st, 2013 (the "Effective Date"), Altan Nevada will receive the following payments:
|On the Effective Date||$10,000|
|First anniversary of the Effective Date||$15,000|
|Second anniversary of the Effective Date||$20,000|
|Third anniversary of the Effective Date||$25,000|
|Fourth and each subsequent anniversary of the Effective Date||$30,000|
The following work commitments must be met within the one year period following the Effective Date and each anniversary of the Effective Date ("Lease Year"):
$50,000 annually during each of the second through fifth Lease Years;
$100,000 annually during each of the sixth through tenth Lease Years; and
$200,000 annually during each of the remaining Lease Years
At any time during the term of the Agreement, the Radar Claims can be purchased, at the election of Avidian, for a one time payment of $500,000. The Company then becomes entitled to receive a royalty equal to 3% of the Net Smelter Returns ("NSR") from the production of minerals on the Radar Claims, which can be reduced to a 1.5% NSR royalty by way of a one-time payment by Avidian of $1,500,000.
About Altan Nevada
Altan Nevada is an exploration company focused on the discovery of large-scale ore systems in under-explored districts of Nevada, USA. The company is currently exploring holdings in Nevada totaling more than 14,670 hectares. Projects include potential district-scale extensions to the north Carlin Gold Trend, three Yerington District copper-gold targets and three large-scale epithermal volcanic-hosted precious metal systems. To date, over US$5M has been spent acquiring and exploring highly prospective projects and identifying targets.
On behalf of Altan Nevada Minerals Limited,
President & CEO
This press release may contain forward looking statements including those describing Altan Nevada's future plans and the expectations of management that a stated result or condition will occur. Any statement addressing future events or conditions necessarily involves inherent risk and uncertainty. Actual results can differ materially from those anticipated by management at the time of writing due to many factors, the majority of which are beyond the control of Altan Nevada and its management.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Altan Nevada Minerals Limited