(TheNewswire)
Receives Additional U S $3Million Payment
Tonopah, Nevada – TheNewswire - October 25, 2023 - Allegiant Gold Ltd.(“Allegiant” or the “Company”) (TSXV:AUAU) (OTC:AUXXF) is pleased to announce the completion of phasetwo of the o ption and joint venture agreement (the Option Agreement”) with Summa SilverCorp. (“Summa”) for the Mogollon Property (“Mogollon”) in NewMexico, USA.
In connection with the Option Agreement dated August21, 2020, Summa has issued 8,912,884 common shares at a deemed priceof $0.4579 per common share in order to satisfy the US$3,000,000 phasetwo option payment and, thereby have completed the acquisition of 100%ownership of Mogollon. The shares issued to Allegiant will have astatutory hold period of four months and one day from the date ofissuance.
As a result of this payment, Allegiant now holds over13.6M shares of Summa. Including all previous payments from Summa,Allegiant has received approximately US$6.2 million in cash proceedsand shares of Summa for the acquisition of Mogollon under the OptionAgreement.
Peter Gianulis, CEO of AllegiantGold , commented: “We arepleased to have owned Mogollon for close to 15 years and now turn itover to a great management and technical team in Summa Silver. Ittruly has been a joy working with them the past four years. I amconfident that they will be able to maximize the value in the propertyand, as a large shareholder in Summa, we look forward to theadvancement and development of Mogollon. Over four years ago, weembarked on our current strategy of focusing on our Flagship Project,Eastside, with over 1.4 million ounces of gold and close to 9 millionounces of silver in the inferred category.* We have been able todouble the inferred resource over this period of time while keepingdilution to one of the lowest in our peer group over that period oftime. We continue to advance Eastside and strongly believe that wehave the potential to significantly increase the resource size and,more importantly, increase the profitable ounces in ground whilekeeping dilution to a minimum. This, in our opinion, is the singlebest way to increase shareholder value.”
* The updatedresource estimate (“Updated Resource Estimate and NI 43-101Technical Report, Eastside and Castle Gold-Silver Project TechnicalReport, Esmeralda County, Nevada”) conducted by Mine DevelopmentAssociates (“ MDA ”) of Reno, Nevada, with an effective date of July 30,2021, contained a pit-constrained Inferred Resources (cut-off grade of0.15 g/t Au) of 61,730,000tonnes grading 0.55 g/t Au and 4.4 g/t Ag at the Original Pit Zone (1,090,000 ounces gold and8,700,000 ounces silver) and 19,986,000 tonnes grading 0.49 g/t Au at theCastle Area (314,000 ounces gold). A copy of the Eastside TechnicalReport can be found on SEDAR at www.sedar.com.
ABOUT ALLEGIANT
Allegiant owns five highly prospective gold projects inthe mining-friendly jurisdiction of Nevada. Allegiant’s flagship,district-scale Eastside project hosts a large and expanding goldresource and is in an area of excellent infrastructure. Preliminarymetallurgical testing indicates that both oxide and sulphide goldmineralization at Eastside is amenable to heap leaching.
ON BEHALF OF THE BOARD
Peter Gianulis
CEO
For more information contact:
Investor Relations
(604) 634-0970 or
1-888-818-1364
ir@allegiantgold.com
Neither TSX Venture Exchange nor itsRegulation Services Provider (as that term is defined in policies ofthe TSX Venture Exchange) accepts responsibility for the adequacy oraccuracy of this release.
Certain statements and informationcontained in this press release constitute "forward-lookingstatements" within the meaning of applicable U.S. securities lawsand “forward-looking information” within the meaning of applicableCanadian securities laws, which are referred to collectively as"forward-looking statements". The United States PrivateSecurities Litigation Reform Act of 1995 provides a “safe harbor”for certain forward-looking statements. Allegiant Gold Ltd.’s (“Allegiant”)exploration plans for its gold exploration properties, the drillprogram at Allegiant’s Eastside project, the preparation andpublication of an updated resource estimate in respect of the OriginalZone at the Eastside project, Allegiant’s future exploration anddevelopment plans, including anticipated costs and timing thereof;Allegiant’s plans for growth through exploration activities,acquisitions or otherwise; and expectations regarding futuremaintenance and capital expenditures, and working capitalrequirements. Forward-looking statements are statements andinformation regarding possible events, conditions or results ofoperations that are based upon assumptions about future economicconditions and courses of action. All statements and information otherthan statements of historical fact may be forward-looking statements.In some cases, forward-looking statements can be identified by the useof words such as “seek”, “expect”, “anticipate”,“budget”, “plan”, “estimate”, “continue”,“forecast”, “intend”, “believe”, “predict”,“potential”, “target”, “may”, “could”, “would”,“might”, “will” and similar words or phrases (includingnegative variations) suggesting future outcomes or statementsregarding an outlook. Such forward-looking statements are based on anumber of material factors and assumptions and involve known andunknown risks, uncertainties and other factors which may cause actualresults, performance or achievements, or industry results, to differmaterially from those anticipated in such forward-looking information.You are cautioned not to place undue reliance on forward-lookingstatements contained in this press release. Some of the known risksand other factors which could cause actual results to differmaterially from those expressed in the forward-looking statements aredescribed in the sections entitled “Risk Factors” in Allegiant’sListing Application, dated January 24, 2018, as filed with the TSXVenture Exchange and available on SEDAR under Allegiant’s profile atwww.sedar.com. Actual results and future events could differmaterially from those anticipated in such statements. Allegiantundertakes no obligation to update or revise any forward-lookingstatements included in this press release if these beliefs, estimatesand opinions or other circumstances should change, except as otherwiserequired by applicable law.
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