Nevada Exploration Inc. and Baymount Inc. Sign Letter of Intent on the Fletcher Junction Gold Project, Nevada
December 16, 2011
Nevada Exploration Inc. (“NGE”) (TSX.V:NGE) is pleased to announce that it has entered into a Letter of Intent (“LOI”) with Baymount Incorporated (“Baymount”) (TSX.V:BYM) whereby Baymount may earn a joint venture interest in NGE’s Fletcher Junction Gold Project, in Mineral County, Nevada (the “Property”).
Under the terms of the LOI, Baymount will have the option to earn a 51% interest in the Property by funding $5,825,000 in qualifying expenditures and making $600,000 in payments over 4 years (the “Earn-In”). The Year 1 payment of $60,000 is due upon the signing of a definitive agreement and the Year 1 work commitment of $580,000 is a firm obligation. Subject to TSX Venture Exchange approval, Baymount may elect to pay up to 50% of the payments due under the definitive agreement by issuing Baymount Common Shares. NGE will act as the Operator during the Earn-In. If Baymount completes the Earn-In, Baymount may earn an additional 14%, for a total of 65%, by completing a feasibility report. Once NGE and Baymount complete a definitive agreement, the companies will issue a further news release with additional details. The foregoing is hereinafter referred to as the Transaction.
The Transaction will constitute of Change of Business for Baymount and is thus subject to a number of conditions, including TSX Venture Exchange and Baymount Shareholder approval. There can be no assurance that the Transaction will be completed as proposed or at all.
More information about the Fletcher Junction Project can be found at NGE’s website: http://www.nevadaexploration.com/properties/fletcher/overview/.
Nevada Exploration Inc.
NGE is an exploration company focused on gold in Nevada. NGE is led by an experienced management team that has been involved with the discovery of more than 30 million ounces of gold in Nevada.
NGE is aggressively applying the latest in “blind deposit” exploration technology to identify, acquire, and advance new exploration properties in Nevada’s highly prospective, yet underexplored covered basins. Specifically, NGE has developed proprietary hydrogeochemistry (groundwater chemistry) exploration technology to explore for gold in Nevada’s covered basins where traditional exploration techniques are challenged.
Using its industry leading exploration technology, NGE has assembled a portfolio of nine new gold projects, and with over 20,000 hectares (75 sq mi), is evolving as a major player in this world class jurisdiction. NGE’s business model is to leverage its properties and technology to create shareholder value through generative exploration, joint ventures, and other exploration partnerships.
For further information please contact:
Vice President Corporate Development
Nevada Exploration Inc.
Tel: (775) 359-7740
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statement on Forward-Looking Information:
This release contains certain "forward-looking statements" including, without limitation, expectations, beliefs, plans and objectives regarding the potential transactions and ventures discussed in this release. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the risks inherent in mineral exploration, the need to obtain additional financing, environmental permits, the availability of needed personnel and equipment for exploration and development, fluctuations in the price of minerals, and general economic conditions.