Nevada Gold Mines Acquires The Maggie Creek Property

CHEYENNE, WY – U.S. Gold Corp. reported the transaction related to the Maggie Creek Property among Nevada Gold Mines LLC (NGM), Orogen Royalties Inc., and U.S. Gold.

Pursuant to an Assignment and Assumption Agreement among NGM, Orogen, RenEx, U.S. Gold, and Orevada, U.S. Gold caused Orevada to assign its interest in the Original Earn-In Agreement to NGM.  Simultaneous with that assignment, NGM and RenEx entered into an Amended and Restated Exploration Earn-In Agreement, pursuant to which NGM can earn a 100% interest in the Maggie Creek Property.

As consideration for the assignment of the Original Earn-In Agreement to NGM, U.S. Gold received payment from NGM, and NGM agreed that if it exercises the NGM Option and acquires the Maggie Creek Property, it will grant to U.S. Gold a 0.5% Net Smelter Returns royalty on all gold and other recovered and saleable minerals from the Maggie Creek Property, pursuant to a separate royalty agreement between NGM and U.S. Gold, the terms of which have been fully agreed as part of the Transaction.  Under the U.S. Gold Royalty Agreement, NGM will have the right to buy back one-half of the U.S. Gold Royalty for a fixed price of $500,000.  In addition, the U.S. Gold Royalty Agreement will provide that U.S. Gold waives the first $800,000 of production royalty payments owed to it, regardless of whether NGM exercises its buy-back rights.  Under the U.S. Gold Royalty Agreement, NGM will also have a right of first refusal to purchase the U.S. Gold Royalty if U.S. Gold decides to sell that royalty.