LAKEWOOD, Colo., Aug. 28, 2018 /PRNewswire/ -- Pershing Gold
Corporation (NASDAQ:PGLC) (TSX: PGLC) (FWB:7PG1) ("Pershing Gold"
or the "Company"), an emerging Nevada gold producer advancing the Relief
Canyon Mine, announced today that it has completed the exercise of
a right of first offer to acquire all of the Newmont USA Limited ("Newmont") royalty and other
rights on specified lands around the Relief Canyon
project.
This transaction is another significant step in securing
Pershing Gold's land package around Relief Canyon. Pershing Gold
secured the lands in the immediate vicinity of Relief Canyon
through the transaction announced in January of 2015. This purchase
provides the Company with enhanced access to expansion
opportunities through its holdings near Relief Canyon.
"This transaction gives Pershing Gold secure tenure throughout
our 45 square mile land position and relieves the Company's work
commitments to Newmont on this highly prospective ground,"
commented Alfers, Pershing Gold's Chairman and CEO. "It unlocks the
value of the land through the elimination of impediments to
exploration and development, and it increases the potential
profitability from production on these areas through the
extinguishing of royalties, clawbacks and other burdens," explained
Alfers. "This ground contains known targets we have developed in
the last two years. The transaction allows the Company to advance
known targets, increasing the potential for discovery of satellite
deposits that could be brought into a near-term production profile
at Relief Canyon upon commencement of operations," stated
Alfers.
The transaction announced today includes the acquisition of
Newmont mining leases and claims lands located in the vicinity of
Pershing Gold's Relief Canyon Mine and covers 4,235 acres of fee
mineral rights and mining claims in Pershing County, Nevada. The area affected by
the transaction is shown on Figure 1. In addition, Pershing extinguishes corresponding Newmont
royalties on these lands, which range from 2.5-5%, as a result of
this transaction. Finally, the transaction terminates the 51%
clawback option that Newmont formerly held on a total of 5,635
acres. See Figure 1. Pershing Gold paid $US1.1 million to complete this transaction.
About Pershing Gold Corporation
Pershing Gold is an emerging gold producer whose primary asset is
the Relief Canyon open-pit gold mine in Pershing County, Nevada. Under the Feasibility
Study released in May 2018, Relief
Canyon is expected to have an average life-of-mine gold production
of 91,000 ounces per year with cash costs of US$769 per ounce and AISC of $802 per ounce. Upon successful project
financing, Relief Canyon is expected to have a short six-to-nine
month construction period before commencing production.
Pershing Gold's landholdings cover over 29,000 acres that
include Relief Canyon Mine and surrounding lands in all directions.
This provides Pershing Gold with the opportunity to expand the
Relief Canyon Mine deposit and to explore and make new discoveries
nearby. Pershing Gold is currently permitted to resume mining at
Relief Canyon under the existing Plan of Operations.
Pershing Gold is listed on the NASDAQ Global Market and the
Toronto Stock Exchange under the symbol "PGLC" and on the Frankfurt
Stock Exchange under the symbol "7PG1".
Legal Notice and Safe Harbor Statement
This press release contains "forward-looking statements" within the
meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995 and applicable Canadian
securities laws. All statements, other than statements of
historical fact, are "forward-looking statements," including the
Company's plans for exploration around the Relief Canyon Mine; the
exploration, development prospects, and potential profitability in
those areas; estimates and forecasts about the Relief Canyon Mine
in the Feasibility Study; the availability of financing to advance
the mine to production and the presumed construction
timeline. Although the Company's management believes
that such forward-looking statements are reasonable, it cannot
guarantee that such expectations are, or will be, correct. These
forward-looking statements involve a number of risks and
uncertainties, which could cause the Company's future results to
differ materially from those anticipated. Potential risks and
uncertainties include, among others, interpretations or
reinterpretations of geologic information, unfavorable exploration
results, inability to obtain permits required for future
exploration, development or production, general economic conditions
and conditions affecting the industries in which the Company
operates; the uncertainty of regulatory requirements and approvals;
fluctuating mineral and commodity prices; final investment
approval; and the ability to obtain necessary financing on
acceptable terms or at all.. Additional information regarding the
factors that may cause actual results to differ materially from
these forward-looking statements is available in the Company's
filings with the Securities and Exchange Commission, including the
Annual Report on Form 10-K for the year ended December 31, 2017, and on SEDAR at www.sedar.com.
The Company assumes no obligation to update any of the information
contained or referenced in this press release.
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SOURCE Pershing Gold Corporation