NORTHERN VERTEX AGREES TO SELL LEMHI PROPERTY JOINT VENTURE INTEREST FOR TOTAL PROCEEDS OF US$7.65 MILLION
Northern Vertex Mining Corp. has agreed to sell its 51-per-cent interest in the Lemhi Gold Trust LLC joint venture to Idaho State Gold Co. LLC for $7.65-million (U.S.), consisting of $4.75-million (U.S.) cash, plus $2.9-million (U.S.) in deferred cash payments. Closing of the $4.75-million (U.S.) cash payment is expected this week, and the deferred cash payments, equal to 3 per cent of all future expenditures at the Lemhi property, are payable to the company in quarterly instalments and capped at $2.9-million (U.S.). The $7.65-million (U.S.) total proceeds from the sale of the company's Lemhi joint venture interest are equal to the entirety of the capital ($7.65-million (U.S.)) the company had contributed to the Lemhi joint venture.
Prior to the sale, ISGC was the company's 49-per-cent partner at the Lemhi joint venture. ISGC now owns 100 per cent of the Lemhi property in Salmon, Idaho, and will immediately assume management and operating control at Lemhi, allowing the Northern Vertex team to focus exclusively on its Moss gold-silver mine in northwest Arizona.
D. Whittington, president and chief executive officer, Northern Vertex Mining, stated: "We are focused on developing our flagship property, the Moss gold-silver mine in northwest Arizona, into production through an effective and efficient parallel-track phased development plan. We are looking forward to rehabilitating and revitalizing this historic mine. The sale of our interest in the Lemhi property is an excellent source of financing that minimizes shareholder dilution and frees up management and capital resources, allowing us to stay focused on the development of the Moss mine."