The TSX Venture Exchange has accepted for filing documentation with respect to an arm's-length lease with option to purchase agreement between Lahontan Gold Corp. and an arm's-length party. Pursuant to the agreement, the company will have an option to acquire a 100-per-cent interest in the West Santa Fe gold-silver exploration project, located in Mineral county in Nevada.

In order to exercise its option, the company must pay the vendor an aggregate of: (i) $1,845,000 (U.S.) in cash over a seven-year period; and (ii) incur an aggregate of $1.4-million (U.S.) in exploration expenditures on the property over a seven-year period. The company at its sole discretion has an option to pay up to $895,000 (U.S.) of the cash consideration in common shares of the company, up to the lesser of: (i) aggregate maximum issuance of 15,913,100 common shares; or (ii) 9.99 per cent of the issued and outstanding shares of the company.

Additionally, on exercise of the option, the vendor will be granted: (i) a 1.50-per-cent net smelter return (NSR) royalty on the Mind 13 through 127 claims; and (ii) a 1.0-per-cent NSR royalty on Mind 1 through 12 claims. The company will have an option to buy back 50 per cent of the 1.5-per-cent NSR for $200,000 (U.S.) prior to the fifth anniversary of the agreement or for $500,000 (U.S.) after the fifth anniversary of the agreement.

The exchange's aforementioned acceptance of the agreement is on the understanding that there will be no creation of new insiders as part of the acquisition and terms thereof.

For further details, please refer to the company's news releases dated May 15, 2023, July 20, 2023, and Aug. 15, 2023.