Nevada Sunrise Amends Option to Purchase Coronado Copper Project, Nevada

Rhea-AI Summary

Nevada Sunrise Metals (NVSGF) has announced amendments to its option agreement for acquiring a 100% interest in the Coronado Copper property in Pershing County, Nevada. The property is located approximately 30 miles southeast of Winnemucca and is subject to a 2.0% net smelter returns royalty with buydown provisions.

Key amendments to the payment schedule include: reducing the September 2024 cash payment from $75,000 to $10,000 (already paid) and increasing share payments from 750,000 to 3,000,000 shares. The September 2026 cash payment has been reduced from $1,050,000 to $75,000, with a new $1,050,000 payment added for September 2027, contingent on producing a positive Pre-Feasibility Study.

If a positive Pre-Feasibility Study is not produced, an alternate payment structure of $75,000, 500,000 shares, and $300,000 in minimum work commitment will be required, extending the Property Purchase Payment by one year.

Positive

• Option to acquire 100% interest in Coronado Copper property
• Reduced immediate cash payment obligations ($10,000 vs $75,000 for 2024)
• Extended payment timeline with more flexible terms

Negative

• Additional share issuance requirement (3,000,000 vs 750,000 shares) indicating potential dilution
• Contingent payment of $1,050,000 in 2027 represents significant future cash obligation
• Ongoing minimum exploration expenditure requirements of $300,000 annually

Vancouver, British Columbia--(Newsfile Corp. - January 24, 2025) - Nevada Sunrise Metals Corporation (TSXV: NEV) (OTC Pink: NVSGF) ("Nevada Sunrise" or the "Company") is pleased to announce that it has negotiated an amendment to the terms of an option agreement whereby the Company has the right to purchase a 100% interest in the Coronado Copper property, formerly known as the Coronado VMS Property ("Coronado", or the "Property"), located in the Tobin Sonoma Range of Pershing County, Nevada, approximately 30 miles (48 kilometres) southeast of Winnemucca. A definitive agreement for Coronado was announced on September 28, 2018, and was subsequently amended in January 2022 and December 2023.

Details of the Coronado Amended Option Agreement Terms

Nevada Sunrise retains the right to acquire a 100% interest in Coronado, subject to a 2.0% net smelter returns royalty ("NSR"), with certain buydown provisions, in consideration for the amended cash and share payments to the vendors and minimum exploration expenditures as described in the table below (all dollar amounts listed are in US dollars):

Schedule of Payments and Expenditures

Coronado Copper Project - Amendments to Schedule of Payments and Expenditures (USD)
Payment Due Dates	Cash Payments	Amended Cash Payments	Share  Payments	Amended Share Payments	Minimum Exploration Expenditures	Amended Minimum Exploration Expenditures
Sept. 25, 2021	$50,000 (paid)	No amendment	500,000 (issued)	n/a	$300,000	No amendment
Sept. 25, 2022	$50,000 (paid)	No amendment	500,000 (issued)	n/a	$300,000	No amendment
Sept. 25, 2023	NIL	No amendment	750,000 (issued)	n/a	NIL	No amendment
Sept. 25, 2024	$75,000	$10,000 (paid)	750,000	3,000,000 (issuance pending)	$300,000	$30,000 (incurred)
Sept. 25, 2025	$75,000	No amendment	500,000	n/a	$300,000	No amendment
Sept. 25, 2026	$1,050,000	$75,000	600,000	500,000	$300,000	No amendment
Sept. 25, 2027	None	$1,050,000(1)	None	500,000	None	$300,000

 

(1) The Sept. 25, 2027, payment is subject to the production of a positive Pre-Feasibility Study by Nevada Sunrise. Should a positive Pre-Feasibility Study not be produced during this period, then an alternate payment of $75,000 along with the annual 500,000 Shares and the $300,000 in Minimum Property Work Commitment shall be due in its place, which shall extend the Property Purchase Payment (balloon payment) for an additional year.

Nevada Sunrise retains the right to accelerate the timing of cash and share payments to the vendors at its discretion. If minimum exploration expenditures, which include property maintenance costs, are exceeded in any year, the excess expenditures will be credited to a succeeding year.

The amending agreement for Coronado is subject to acceptance by the TSX Venture Exchange. For more information about Coronado, including maps and photos, click here.

About Nevada Sunrise

Nevada Sunrise is a junior mineral exploration company with a strong technical team based in Vancouver, BC, Canada, that holds interests in lithium and copper exploration projects located in the State of Nevada, USA.

Nevada Sunrise owns 100% interests in the Gemini, Jackson Wash and Badlands lithium projects, all of which are located in the Lida Valley in Esmeralda County, NV. The Company owns Nevada Water Right Permit 86863, also located in the Lida Valley basin, near Lida, NV.

Nevada Sunrise holds the right to earn a 100% interest in the Coronado Copper Project, located approximately 48 kilometers (30 miles) southeast of Winnemucca, NV.

For Further Information Contact:
Warren Stanyer, President and Chief Executive Officer
email: warrenstanyer@nevadasunrise.ca Telephone: (604) 428-8028
Website: www.nevadasunrise.ca

FORWARD-LOOKING STATEMENTS

This release may contain forward‐looking statements. Forward-Looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur and include disclosure of anticipated exploration activities. Although the Company believes the expectations expressed in such forward‐looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward-looking statements. Forward‐Looking statements are based on the beliefs, estimates and opinions of the Company's management on the date such statements were made. The Company expressly disclaims any intention or obligation to update or revise any forward‐looking statements whether as a result of new information, future events or otherwise.

Such factors include, among others, risks related to: receiving acceptance from the TSX Venture Exchange for the shares issuance as referenced in the amended Coronado option agreement terms; the ability of the Company to raise funds for exploration activities at the Coronado Project; reliance on technical information provided by third parties on any of our exploration properties; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; labor disputes and other risks of the mining industry; delays due to pandemic; delays in obtaining governmental approvals, financing or in the completion of exploration, as well as those factors discussed in the section entitled "Risk Factors" in the Company's Management Discussion and Analysis for the Nine Months Ending June 30, 2024, which is available under Company's SEDAR profile at: www.sedarplus.ca.

Although Nevada Sunrise has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Nevada Sunrise disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking information.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/238295

FAQ

What are the new payment terms for NVSGF's Coronado Copper property option?

The 2024 cash payment has been reduced from $75,000 to $10,000, with share payments increased to 3,000,000. The 2026 payment is reduced to $75,000, with a new $1,050,000 payment added for 2027, contingent on a positive Pre-Feasibility Study.

How many shares will NVSGF issue for the Coronado Copper property in 2024?

NVSGF will issue 3,000,000 shares for the Coronado Copper property in 2024, increased from the original 750,000 shares requirement.

What happens if NVSGF doesn't produce a Pre-Feasibility Study by September 2027?

If no positive Pre-Feasibility Study is produced, NVSGF must make an alternate payment of $75,000, issue 500,000 shares, and meet a $300,000 minimum work commitment, extending the final payment by one year.

What are the annual minimum exploration expenditures required for NVSGF's Coronado property?

NVSGF must maintain annual minimum exploration expenditures of $300,000 for the Coronado property, with excess expenditures credited to succeeding years.