NuLegacy Gold (TSXV: NUG | OTC: NULGF) has created a 2% gross overriding royalty (GOR) on its flagship Red Hill Property in the Cortez gold trend of Nevada, USA. The company has announced this, in preparation for its 2023 drilling programme, along with the possibility of selling the property to a producing company in future.
The GOR has been granted by NuLegacy’s US subsidiary company, NuLegacy Gold Corporation NV (NUG NV), the holder of the Red Hill Property, in favour of its parent company. The purchase price for the GOR (US$6.0M) has been satisfied by off-setting US$6.0M from NUG NV’s outstanding intercompany loan, which purchase price is subject to adjustment pending receipt of an independent valuation of the GOR.
Currently the Red Hill Property supports a 3.0% GOR, half of which (1.5%) is held by Metalla Royalty & Streaming Ltd. who purchased it in an arm’s length transaction for approximately US$3.3M in three years ago in May 2020 when gold prices were circa US$1,600/oz.
Overall, NuLegacy Gold is focused on confirming potential high-grade gold deposits within its Red Hill Property, with targets on trend and adjacent to three multi-million-ounce gold deposits also in the area.
For further information please visit: www.nulegacygold.com
