04:37:02 EDT Thu 22 Oct 2020
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Allegiant Gold Ltd
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Close 2020-08-25 C$ 0.365
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Allegiant Gold options Mogollon property to Summa

2020-08-25 10:46 ET - News Release

Also News Release (C-SSVR) Summa Silver Corp

Mr. Peter Gianulis of Allegiant Gold reports


Allegiant Gold Ltd. has signed a definitive agreement with Summa Silver Corp. whereby Summa can acquire up to a 100-per-cent interest in the historic Mogollon silver-gold mining district of southwestern New Mexico from Allegiant Gold Ltd.

Peter Gianulis, chief executive officer of Allegiant Gold, commented: "We are very excited to have reached an agreement with Summa. Their dedication and professionalism throughout this process was unparalleled, and we are confident that we selected the right partner to develop one of the best undeveloped silver projects in the U.S. We look forward to their progress and our ability to focus on the development of Eastside, our flagship gold-oxide project in Nevada. Allegiant now has four projects farmed out, three of which are expected to be drilled over the coming month in addition to drilling up to 15,000 metres at Eastside this season. We continue to execute our business plan and are very pleased with the progress we have made this year."

Acquisition terms

Summa may earn up to a 100-per-cent interest in the property from Allegiant in two phases.

Phase I is an option to earn a 75-per-cent interest in the property over three years for staged payments totalling $350,000 (U.S.) in cash, 200,000 shares, $1.45-million of value in shares, and a final payment of $1-million (U.S.) that may be paid in cash and/or shares at the election of Summa. Additionally, the phase I earn-in includes a $3-million (U.S.) work commitment on the property.

After the 75-per-cent earn-in, Summa can then elect to either form a 75-per-cent/25-per-cent joint venture with Allegiant or purchase the remaining 25-per-cent interest for $3-million (U.S.) in cash and shares, a minimum of $1-million (U.S.) of which must be in cash.

Qualified person

The technical content of this news release has been reviewed and approved by both Andy Wallace, CPG, director of Allegiant Gold, and Galen McNamara, PGeo, chief executive officer of Summa Silver. Both individuals are qualified persons as defined by National Instrument 43-101. The qualified persons have not verified the data disclosed, including sampling, analytical and test data underlying the information or opinions contained in the written disclosure.

About Mogollon

The property consists of 81 patented mining claims and 86 unpatented lode mining claims located in Catron county, New Mexico. The patented claims are surrounded by lands administered by the U.S. Forest Service. Seventy-one of the patented claims are leased under two separate agreements. Sixty-four of the unpatented claims are leased under one agreement. The remaining patented and unpatented claims are 100 per cent owned by Allegiant.

About Summa Silver Corp.

Summa Silver is a Canadian junior mineral exploration company. Summa has the option to earn a 100-per-cent interest in the Hughes property located in central Nevada. The Hughes property is host to the high-grade past-producing Belmont mine, one of the most prolific silver producers in the United States between 1903 and 1929. The mine has remained inactive since commercial production ceased in 1929 due to heavily depressed metal prices and little to no modern exploration work has ever been completed.

About Allegiant Gold Ltd.

Allegiant owns 100 per cent of 10 highly prospective gold projects in the United States, seven of which are located in the mining-friendly jurisdiction of Nevada. Three of Allegiant's projects are 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.

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