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Saturday, 03/23/2024 1:55:52 PM

Saturday, March 23, 2024 1:55:52 PM

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Blackrock Silver Exercises Option to Buy Tonopah West Project
Newsfile Corp.
Wed, Mar 13, 20244 min read

In This Article:

Vancouver, British Columbia--(Newsfile Corp. - March 13, 2024) - Blackrock Silver Corp. (TSXV: BRC) (the "Company" or "Blackrock") is pleased to announce that the Company has exercised its option (the "Option") to acquire a 100% interest in the Tonopah West project ("Tonopah West") pursuant to an option agreement dated February 24, 2020 (the "Option Agreement") between the Company's wholly-owned Nevada subsidiary, Blackrock Gold Corp., and Nevada Select Royalty, Inc. ("Nevada Select Royalty"), a wholly-owned subsidiary of Gold Royalty Corp. Tonopah West consists of 101 patented and 19 unpatented lode mining claims covering mineral rights on approximately 1,380 acres (558.5 hectares) located within the historic Tonopah silver district in the Walker Lane trend of Western Nevada.

Andrew Pollard, President and Chief Executive Officer of the Company, commented: "In the four years since we first optioned Tonopah West, it has quickly emerged as one of the best silver discoveries of the decade, cementing its status as the highest-grade undeveloped large silver project in the world1, and we're excited to now complete our acquisition granting us 100% ownership of the property. With title in-hand, we are now squarely in the driver's seat to continue on our mission to quickly de-risk and advance the project through further engineering, hydrologic and metallurgic studies, while pursuing the vast resource expansion potential."

David Garofalo, Chairman and Chief Executive Officer of Gold Royalty Corp, commented, "The Blackrock team has delivered significant value with their advancement of the Tonopah West project, which has quickly become one of the most exciting precious metals projects in Nevada. We are encouraged to have continued exposure to the project through our royalty interest, and for Blackrock to continue to deliver on their strategy of unlocking the value of the project."

In connection with the exercise of the Option to acquire Tonopah West, the Company made payments to Nevada Select Royalty totalling US$3 million over a 4-year term, with a final cash payment in the amount of US$1,000,000.

Pursuant to the terms of the Option Agreement, Nevada Select Royalty retained a net smelter returns royalty (the "Royalty") on Tonopah West equal to 3.0% of the net value of all precious and base metals, products and materials of commercial value mined and removed from Tonopah West and sold by the Company. Under the terms of the royalty agreement (the "NSR Agreement"), the Company is required to pay Nevada Select Royalty an annual advance minimum royalty of US$50,000 (each, an "Advance Royalty Payment") until the earlier of the commencement of commercial production at Tonopah West or the twentieth (20th) anniversary of the effective date of the NSR Agreement. All Advance Royalty Payments made by the Company will be credited towards any future royalty payments to Nevada Select Royalty.

The Royalty also covers 64 unpatented claims staked by the Company in July 2021 which fall within the one (1) mile area of interest delineated by the Option Agreement. Such additional claims cover 1,280 acres (518 hectares) bringing Tonopah West to a total size of 2,660 acres (1076.5 hectares).