Aura Resources Inc. (TSX-V:AUU) (“Aura” or the “Company”) is pleased to announce that it has entered into amending agreements with respect to its option agreements for both the Gold Chain, Arizona and Jefferson Canyon, Nevada projects. The Company retains a right to earn a 100% interest in both projects while the future payment schedules for certain cash and share payments have been amended as further detailed below.
Robert Johansing, President and CEO of Aura, states, “The amendments to these two property option agreements are an important step to allow Aura to move forward with exploration programs on these highly prospective gold projects. I would like to thank the project optionors for providing us with additional flexibility by reducing and deferring future cash payments and adjusting share payments under these agreements.”
Details with respect to these amendments are as follows:
Gold Chain, Arizona
The amended agreement for the Gold Chain project requires a balance of future annual cash payments of US$510,000 on or before July 30, 2025 compared to the original agreement which required a balance of US$1,450,000 on or before July 30, 2022. Future share payments now total a value of US$300,000 on or before July 30, 2025 compared to the original agreement which required a balance of 450,000 common shares on or before July 30, 2022. Details of the revised future payments are as follows:
|Common share payments
|On or before July 30, 2020||$40,000||$60,000|
|On or before July 30, 2021||30,000||48,000|
|On or before July 30, 2022||30,000||48,000|
|On or before July 30, 2023||60,000||48,000|
|On or before July 30, 2024||100,000||48,000|
|On or before July 30, 2025||250,000||48,000|
Additionally, the optionors will be entitled to a bonus cash payment equivalent to US$1.00 per ounce of gold, estimated in any resource category determined in a Preliminary Economic Assessment compliant with National Instrument 43-101. Any bonus payment that becomes payable will be creditable toward future amounts due under the existing 2% NSR royalty on the project.
There continues to be no minimum commitments for exploration work expenditures under the Gold Chain option agreement.
Jefferson Canyon, Nevada
The agreement for Jefferson Canyon with Thorsen-Fordyce Merchant Capital Inc. (“Thorsen”) and TF Minerals (USA) Inc. (together the “TF Parties”) has been amended to defer the cash payment of US$250,000 which was due on or before May 31, 2025 as follows: US$25,000 on or before May 31, 2025; US$25,000 on or before May 31, 2026; and, US$200,000 on or before May 31, 2027. Additionally, the period required to incur minimum exploration expenditures of US$100,000 has been extended by a one- year period to May 31, 2022. All other terms of the option agreement with the TF Parties remain unchanged.
Additionally, the underlying option agreement between Thorsen and an individual claim holder has been amended to extend its term by a one-year period and to defer all annual advance royalty payments by a one-year period. The underlying agreement requires annual advance royalty payments by the September 14 anniversary through to 2030 or until exercise of the option to purchase. Annual advance royalty payments continue to total US$425,000 (US$5,000 was paid by Thorsen with a balance of US$420,000 due at initiation of the option agreement). The annual advance royalty payment schedule comprises US$10,000 due September, 2019 (paid), US$15,000 in 2020, after which the annual payment increases by US$5,000 per year until 2026 and is followed by four annual payments of US$50,000 for 2027 to 2030. The option to acquire a 100% interest in the 29 claims remains exercisable at any time during its term, now up until March 14, 2032, by paying a purchase price of US$500,000. Any advance royalty payments paid and the purchase price are creditable against future net smelter return royalty payable.
These amending agreements are subject to approval of the TSX Venture Exchange.
Robert Johansing, M.Sc. Econ. Geol., P. Geo. is a qualified person as defined by NI 43-101 and has reviewed and approved the technical content of this press release.
Aura is a TSX Venture listed company engaged in the acquisition, exploration and development of precious metal prospects in Arizona, USA (Gold Chain project, subject to an option to earn a 100% interest), in Nevada, USA (Jefferson Canyon project, subject to an option to earn 100%), in Nunavut, Canada (37.6% interest in the Greyhound project under operation by our partner, Agnico Eagle Mines Limited), and, in Oaxaca, Mexico (20% owned Taviche project, operated by Minaurum Gold Inc.). Aura has 32,860,128 common shares outstanding.
For further information regarding this press release contact: Robert Johansing, President and CEO at (805) 455-4775 or by e-mail at firstname.lastname@example.org. Aura’s web site is located at www.aurasilver.com.
This press release may contain forward looking statements that are made as of the date hereof and are based on current expectations, forecasts and assumptions which involve risks and uncertainties associated with our business including the uncertainty as to whether further exploration will result in the target(s) being delineated as a mineral resource, capital expenditures, operating costs, mineral resources, recovery rates, grades and prices, estimated goals, expansion and growth of the business and operations, the private placement financing activities of the Company, plans and references to the Company’s future successes with its business and the economic environment in which the business operates. All such statements are made pursuant to the ‘safe harbour’ provisions of, and are intended to be forward-looking statements under, applicable Canadian securities legislation. Any statements contained herein that are statements of historical facts may be deemed to be forward-looking statements. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. We caution readers of this news release not to place undue reliance on our forward-looking statements as a number of factors could cause actual results or conditions to differ materially from current expectations. Please refer to the risks set forth in the Company’s most recent annual MD&A and the Company’s continuous disclosure documents that can be found on SEDAR at www.sedar.com. Aura does not intend, and disclaims any obligation, except as required by law, to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
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