Golden Lake Announces Signing Of New Lease On Jewel Ridge, Nevada

Executive Summary

• Golden Lake Exploration entered into a new 7‑year mining lease with option to purchase the Jewel Ridge claims in Nevada, replacing its 2004 lease.
• The lease requires $25,000 annual payments and a minimum of $1 M of exploration/development expenditures for the first three years; the company may acquire the property for $3 M less all lease payments made.
• Production royalties are set at 4.0% of net smelter returns with optional buy‑down provisions ranging from $1 M to $3 M per percentage point.

Key Details

• Lease Parties: Golden Lake Exploration Inc. (lessee) and GM Squared, LLC (lessor).
• Property Covered: 96 unpatented federal mining claims + 11 patented claims (~80% of Jewel Ridge project).
• Term & Payments: 7‑year term; $25,000 annual lease payment; minimum $1 M/year in exploration/development spend for years 1‑3.
• Purchase Option: Right to buy the Lease Claims for $3 M less total lease payments already made.
• Royalty on Production: 4.0% of net smelter returns, payable to Lessor upon commencement of production.
• Royalty Buy‑Down Options:
• $1,000,000 to reduce royalty by 1.0% (to 3.0%).
• $1,500,000 to reduce another 1.0% (to 2.0%).
• $2,500,000 to reduce another 1.0% (to 1.0%).
• $3,000,000 to eliminate the royalty entirely.
• Termination Rights: Company may terminate with 30 days’ written notice; Lessor may terminate upon default after a 30‑day cure period.
• Additional Adjacent Claims:
• 19 patented “Rainbow” claims acquired from Greencastle Resources Ltd.; subject to 3.0% royalty, with option (exercisable until 2030) to buy down to 1.0% for C$2 M.
• April 2022 addition of Lord Byron patented claims (4 acres) – no royalties or obligations.
• September 2023 staking of 46 BLM lode claims (924 acres) – 100% owned, no royalty or work commitments.
• Correction Notice: Earlier release mistakenly referenced “Greenlane” Resources Ltd.; the correct counterpart is “Greencastle” Resources Ltd.

Notable Quotes

“Mike England, CEO & Director, said the new lease and purchase option provide Golden Lake with a clear pathway to secure full ownership of the Jewel Ridge project while aligning incentives for continued exploration and development.” (quoted in the release)