Riley Gold and Kinross Gold Partner on Nevada Gold Project
Riley Gold has signed an agreement with Kinross Gold U.S.A., a subsidiary of Kinross Gold Corporation, to allow Kinross to earn up to a 75% interest in the Pipeline West/Clipper Gold Project (PWC) in Lander County, Nevada. This deal involves Kinross spending a minimum of $20 million on exploration and development.
Located in the gold-rich Cortez District along the Battle Mountain - Eureka Trend, the PWC project covers an area of approximately 24.7 square kilometers. With this agreement, Kinross will immediately become the project operator and acquire a strategic 9.9% equity interest in Riley Gold through a private placement.
Todd Hilditch, CEO of Riley Gold, expressed enthusiasm for the partnership, highlighting Kinross's extensive experience in global gold mining and its operations in Nevada, which include the Round Mountain and Bald Mountain mines. He noted the Cortez District's history of significant gold production and reserves, positioning PWC adjacent to Nevada Gold Mines LLC, a collaboration between Barrick Gold Corp. and Newmont Corporation with active operations in the region.
Under the terms of the agreement, Kinross will reimburse Riley Gold $104,355 for land holding costs within 60 days. To earn a 60% interest, Kinross is required to spend $10 million on the project over five years, including a guaranteed $1.5 million within the first 18 months for core drilling and subsequent investments leading to the total. A further $10 million expenditure within two additional years grants Kinross the option to increase its stake to 75%.
A Project Technical Committee will be formed with members from both companies to oversee the project's progress. Following the initial earn-in phase, a Nevada limited liability company will be established to manage the partnership's holdings in PWC. If Riley Gold's interest falls to 10% or less, it will be converted to a 2% net smelter return royalty, ensuring continued investment and operational input from both entities.07:09 PM
