Canagold Resources Ltd. (TSX: CCM, OTC-QB: CRCUF, Frankfurt: CAN) (“Canagold” or the “Company”), is pleased to announce that Getchell Gold Corp. (“Getchell”) has informed the Company that first year expenditure commitments have been met and the Getchell Board of Directors have approved the 1st Anniversary payment under the definitive option agreement to acquire 100% of the Fondaway Canyon Gold Project in Nevada (“Fondaway” or the “Property”).
Under the terms of the Option Agreement Canagold will receive a cash payment of US$100,000 and issuance of US$200,000 in shares of Getchell in advance of the 1st anniversary date of January 7, 2021.
About the Property
Fondaway is an advanced stage gold property with a large historic resource located in Churchill County, Nevada comprising 136 unpatented lode claims totaling 898 hectares (2,220 acres). Gold was first discovered in Fondaway Canyon in 1977 and over the intervening 40+ years has been the subject of multiple exploration campaigns totaling 735 reverse circulation and core drill holes, small-scale open pit mining of the oxidized zone at surface, and underground development limited to exploration and bulk sampling along one of the main gold mineralized shear vein zones.
Getchell recently completed a 6-hole drill program at Fondaway Canyon and assay results are pending due to a backlog in sample processing is the combined result of the high volume of samples received due to the increased exploration activity in Nevada triggered by a strong gold market and staffing deficiencies at the analytical lab associated with COVID-19.
Getchell can acquire a 100% interest in the Property under the terms of the Option Agreement by making certain cash payments and share issuances to Canagold and incurring exploration expenditures on the Property (See news release of January 7, 2020). Upon exercise of the option Canagold will retain a 2% NSR on the Property.
Fondaway is one of 11 mineral properties in the American Innovative Minerals (“AIM”) USA gold package acquired by Canagold in 2017 and is one of 4 AIM properties optioned out to third parties wanting to explore and earn interests in Canagold’s Nevada, Idaho and Montana portfolio. Canagold continues to receive expressions of interest in the remaining 7 AIM USA properties as well as the Corral Canyon project in Nevada.
Canarc is focused on creating shareholder value by advancing its flagship New Polaris Gold Project and acquiring new gold properties with exciting discovery potential.
Qualified Person
Garry Biles, P. Eng, President & COO for Canagold Resources Ltd., is the Qualified Person who reviewed and approved the contents of this news release.
“Scott Eldridge”