Renaissance Gold Signs Southern Nevada Exploration Agreement with Callinan Royalties
Renaissance Gold Inc. (TSX:REN) (“RenGold”) is pleased to announce that it has signed an exploration alliance agreement (the "Agreement") with Callinan Royalties Corp. ("Callinan"). The purpose of the Agreement is to fund prospect generation activities in order for RenGold to attract joint venture partners to projects, while allowing Callinan to generate and acquire royalties.
The initial geographic focus will be southern Nevada but may expand to other jurisdictions. The Agreement will be for an initial three year term and calls for Callinan to fund $150,000 of generative exploration during the first year of the Agreement with the option to fund up to $100,000 in each of the two subsequent years.
In return for such funding, RenGold will grant Callinan the option to receive a 0.5% Net Smelter Returns ("NSR") royalty on any new projects acquired as a result of the generative exploration work. Alternatively, Callinan has the option of funding an additional $150,000 on any of the new projects in exchange for a 1.5% NSR royalty.
If RenGold proposes that additional value can be generated after spending $150,000, Callinan may elect to contribute subsequent funding with RenGold on an equally shared basis with no change to Callinan's royalty interest. RenGold may also propose exploration on their existing mineral properties. Callinan will have the option to fund $150,000 in exploration on those projects in return for a 1.5% NSR royalty.
Richard Bedell, President and CEO of RenGold, comments: “Renaissance has been successful in generating shareholder value through the joint venture business model. This agreement is a modification of that model and will allow Renaissance to benefit from the downturn in the industry by being proactive with no shareholder dilution. Callinan is also currently a shareholder that understands our business and we consider them a long-term investor."
Renaissance Gold Inc.
Renaissance Gold Inc. is a gold/silver exploration company that has a large portfolio of exploration projects in Nevada, Utah, Argentina and Spain. Many of the projects are in exploration earn-in agreements with industry partners who provide exploration funding. RenGold applies the extensive exploration experience and high-end technical skills of its founders and team members to search for and acquire new precious metal exploration projects that are then offered for joint venture.
Renaissance Gold Inc.
By: Richard L. Bedell, President and CEO
For further information, contact:
Richard L. Bedell, 775-337-1545 or rbedell@rengold.com
Eric Struhsacker, 775-337-1545 or estruhsacker@rengold.com
This news release contains certain statements that may be deemed “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. Although Renaissance Gold Inc. 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 Renaissance Gold Inc.’s management on the date the statements are made. Except as required by law, Renaissance Gold Inc. undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.
Contact
Renaissance Gold Inc.
Richard L. Bedell, 775-337-1545
rbedell@rengold.com
or
Eric Struhsacker, 775-337-1545
estruhsacker@rengold.com