Eagle Royalties (ER.C) has announced it has acquired a 1% NSR on the East Goldfield project in Nevada, which is currently owned by Silver Range Resources (SNG.V). The project is located approximately 8 kilometers east of the town of Goldfield and just 6 kilometers east of the Goldfield Main deposit which produced in excess of 4 million ounces of gold.
The East Goldfield project is directly adjacent to the Goldfield project, owned by Centerra Gold (CG.TO, CGAU) which acquired the asset from Waterton for in excess of US$200M, just over two years ago. Silver Range obtained the East Goldfield property through staking and has mapped over 75 workings on its tenements indicating the merits of the asset. And as Eagle Royalties is paying just US$25,000 in cash to acquire the 1% NSR, its risk is very limited as it’s paying next to nothing for a royalty. The cash payment won’t even make a dent in the company’s treasury either as the company recently closed a uranium royalty asset sale for total consideration of C$3.75M (which we discussed HERE).
Disclosure: The author has a small long position in Eagle Royalties. Eagle Royalties is a sponsor of the website. Please read the disclaimer.
