LAS VEGAS, NEVADA--(Marketwired - Jan 23, 2015) - Patriot Gold Corp. (OTCQB:PGOL) ("Patriot") announced today that it has issued a demand for arbitration to its optionee (Northern Vertex Mining Corporation/Golden Vertex Corporation) ("Northern Vertex") pursuant to the "Exploration and Option to Enter Joint Venture Agreement Moss Mine Project" (the Agreement) between the two parties. The arbitration demand relates to:
The Scope and Technical Details of the Bankable Feasibility Study:
Under the Agreement, Northern Vertex is required to prepare a Bankable Feasibility Study ("BFS") as part of the earn-in requirement. Patriot asserts that the feasibility study as proposed by Northern Vertex does not meet the standards of a Bankable Feasibility Study as contemplated by the Agreement.
The Obligation to Pay Net Operating Profit to Patriot Gold:
Under the Agreement and subject to the provisions of Section 8.1, any "net operating profit" (NOP) realized by Northern Vertex from the sale of precious metals must be paid to Patriot. The dispute between the two parties relates to whether the precious metals produced from the Moss Mine to date are subject to the NOP provision of the Agreement.
The next step in the arbitration process is for both parties to agree on an arbitrator or, if agreement cannot be reached, an arbitrator be appointed. The process is described in greater detail in Section 16 (Dispute Resolution) of the Agreement.
The Moss Mine Project
Patriot's 100%-owned Moss Mine Project is located approximately seven miles due east of Bullhead City, Arizona. The Moss Mine project is subject to certain royalties and an earn-in option agreement for 70% interest. The earn-in optionee/operator (Northern Vertex Mining Corp.) has the right to earn a 70% interest in the project by completing an $8.5 million investment over five years and a bankable feasibility study. Subsequent to the earn-in, financing of the project will be on a proportional basis.
About Patriot Gold Corp
Patriot Gold Corp. is a precious metals exploration and production company, with three gold projects in the Southwest US, the most advanced being its Moss Mine project in northern Arizona which is now in pilot production. Its Bruner gold project in Nevada is still being explored but has returned exceptional drill results to date. Its Vernal gold project in Nevada has not yet been drilled.