VANCOUVER, British Columbia, Dec. 30, 2013 (GLOBE NEWSWIRE) -- Nevada Sunrise Gold Corporation ("Nevada Sunrise" or the "Company") (TSX-V:NEV) is pleased to announce the signing of an amendment to a mining lease on the Golden Arrow property, located near Tonopah, Nevada.
Several claim blocks at Golden Arrow totaling 185 unpatented lode mining claims are held through a mining lease (the "Mining Lease") between Intor Resource Corp., a subsidiary of Nevada Sunrise, and Nevada Eagle Resources LLC ("Nevada Eagle"), a subsidiary of Newmont Mining Corporation. Past exploration has defined two centers of gold mineralization within the claims covered by the Mining Lease, known as the Hidden Hill and Gold Coin zones. In 2010, the Mining Lease was extended from its previous expiry date of December 31, 2011 for an additional five years to December 31, 2016, with additional one-year extensions of the Mining Lease at the option of Nevada Sunrise. The additional one year extensions under the previous Mining Lease terms resulted in a doubling of the advance royalty payment for each one year extension, beginning January 1, 2017.
The terms of the amendment to the mining lease are as follows:
- The advance minimum royalty payment (the "Advance Royalty Payment") is now reduced, from $50,000 to $25,000 per year, for the remainder of the term of the Mining Lease. The Mining Lease can be extended year-to-year at the Company's option by making the Advance Royalty Payments, which are capped at $25,000 per year;
- The Advance Royalty Payment due on January 1, 2014 has been deferred to July 1, 2014. Each subsequent annual Advance Royalty Payment of $25,000 is due and payable on January 1 st of each succeeding calendar year;
- The production royalty, currently at 2.0%, is increased by one percentage point (1.0%) to 3.0% (the "Amended Production Royalty");
- Nevada Sunrise may purchase one percentage point (1.0%) of the Amended Production Royalty from Nevada Eagle for US$1.0 million at any time during the remaining term and any subsequent terms.