Allegiant Partner Completes Option Exercise for Bolo Elects the Option to Acquire 75% of Bolo
Tonopah, Nevada – TheNewswire - March 16, 2023 - Allegiant Gold Ltd. (“Allegiant” or the “Company”) (TSXV:AUAU) (OTC:AUXXF) announces that CopAur Minerals, Inc. (“CopAur”) has completed the terms of the option agreement to earn-into 50.01% of Allegiant Bolo project (“Bolo”) and has elected the option to acquire 75% of the project.
Allegiant was informed by CopAur that it had met the US$1.5 million work requirement on Bolo for calendar year 2022, thereby having met all terms of the option agreement signed between Allegiant and Barrian Mining Corp in 2018. Barrian (later renamed “New Placer Dome Mining”) was acquired by CopAur in December 2022 and assumed the option agreement. The original terms of the agreement required CopAur to spend a total of US$4 million on a work program at Bolo while making staged option payments to Allegiant for a total of US$1 million in order to earn-into a 49.99% working interest. CopAur could subsequently elect the option to acquire an additional 25% of Bolo (a total of 75% working interest) by spending an additional US$4 million within two years. By electing this option, CopAur is granted an additional 0.02% working interest for a total of 50.01% and is the current operator of the project.
Peter Gianulis, CEO of Allegiant Gold, commented: “We welcome CopAur as an equity partner in our Bolo project and look forward to the upcoming work program over the coming years. Since our initial discovery of Bolo in 2016, we believe Bolo to be one of the best prospective projects in the State of Nevada. This is a testament to the success of our farm-out business model that has provided Allegiant, and thereby our investors, with various paths to non-dilutive financings while our partners advance our projects. We continue to advance Eastside, our flagship project, and believe that Allegiant has multiple paths to continue adding shareholder value.”
Allegiant owns seven highly-prospective gold projects in the United States, five of which are located in the mining-friendly jurisdiction of Nevada. Three of Allegiant’s projects are currently farmed-out, providing for cost reductions and cash-flow. Allegiant’s flagship, district-scale Eastside project hosts a large and expanding gold resource and is located in an area of excellent infrastructure. Preliminary metallurgical testing indicates that both oxide and sulphide gold mineralization at Eastside is amenable to heap leaching.
ON BEHALF OF THE BOARD
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