Newmont enters two-year extension on option agreement with Gold Terra

Gold Terra Resource extended its four year definitive option agreement with Newmont Canada FN Holdings and Miramar Northern Mining, both wholly owned subsidiaries of Newmont Corporation, to a six year agreement which grants Gold Terra the option, upon meeting certain minimum requirements, to purchase MNML from Newmont FN, which includes 100% of all the assets, mineral leases, Crown mineral claims, and surface rights comprising the Con Mine, as well as the areas immediately adjacent to the Con Mine. The extended Option Agreement to six years provides the Company more time to complete its evaluation before exercising its option to purchase 100% of MNML, the owner of the past-producing Con Mine, which produced more than 6.1 Moz along the Campbell and Con Shear structures. Completion of the Option Agreement will consolidate the Company’s strategic land position in the prolific Yellowknife Gold Belt and provide potential future development optionality. The former Con Mine is a world-class gold deposit and part of the prolific Yellowknife mining camp. Option Agreement Highlights: Execution of the 2021 Option Agreement to include all of MNML and the Con Mine Property. The Option Agreement has now been extended whereby in order to retain the Earn-In Right and earn the Purchase Option, Gold Terra must, within six years following the Effective Date complete the Earn-In specifications. Gold Terra has agreed to incur a minimum of C$8.0 million in exploration expenditures over a period of six years, which will include all exploration expenditures incurred to date under the initial Exploration Agreement. Gold Terra has also agreed to: Complete a Pre-Feasibility Study of a mineral resource and a minimum of 1.5 Moz in all categories, Obtain all necessary regulatory approvals for the purchase and transfer of MNML’s assets and liabilities to Gold Terra, Post a cash bond to reflect the status of the Con Mine reclamation plan at the time of closing. The closing of the Transaction will then be completed with Gold Terra making a final cash payment of C$8,000,000. Newmont will retain a 2% net smelter returns royalty on minerals produced from the Con Mine Property. The NSR may be reduced by 50% by the Company paying Newmont the sum of C$10,000,000, for a period of two years following the annoucement of commercial production. After Gold Terra exercises its option, Newmont will have a period of two years to exercise its one time back-in right of a 51% participating interest in MNML and the Con Mine Property, which can be triggered by Gold Terra delineating a minimum of five million ounces of gold in the measured and indicated mineral resource categories supported by a National Instrument NI 43-101 technical report. If Newmont exercise its one time only back-in right, it will have to reimburse Gold Terra 3 times its exploration expenditure to that date, and also pay US$ 30 per once on 51% of all the ounces delineated in the latest 43-101 report