Revival Gold closes acquisition of Mercur Mines

Executive Summary

• Revival Gold Inc. has closed the acquisition of Mercur Mines LLC (formerly Barrick Resources USA Inc.), securing mineral and surface interests in the Mercur gold project in Utah.
• The acquisition expands the total project area to approximately 7,200 hectares, bringing Revival Gold into control of a large, past-producing Carlin-style gold system.
• The transaction involves an initial cash payment of $5 million USD, with potential future payments of $5 million USD on each of the first three anniversaries of commercial production, plus royalty obligations.

Key Details

• Transaction Structure: Acquisition of Mercur Mines LLC via a membership interest purchase agreement (MIPA) with Barrick Gold Exploration Inc.
• Asset Details: Mineral and surface interests in the Mercur gold project, Utah. Total project area now approx. 7,200 hectares (acquisition covers approx. 996 hectares).
• Consideration:
  • Initial payment: $5 million (U.S.) paid on closing.
  • Contingent payments: $5 million (U.S.) payable on each of the first, second, and third anniversaries of commercial production.
• Royalties:
  • 2% Net Smelter Return (NSR) royalty on the acquired mineral interests.
  • 1% NSR royalty on all other Revival Gold mineral properties within one kilometer of the mining claims.
• Assumed Liabilities: Environmental surety bonding obligations of $4,515,000 (U.S.).
• Project Status & Timeline:
  • Preliminary Economic Assessment (PEA) released March 2025.
  • 115-hole drilling program completed in 2025; assay results for remaining 8 holes expected shortly.
  • Planned activities: 16 km of additional drilling, metallurgical testwork, and baseline data collection.
  • Prefeasibility Study (PFS) expected Q1 2027.
  • Re-permitting timeline: Two years.
  • Mine construction forecast: 2028.
  • First gold production expected: 2029.
• Economic Impact (Based on PEA):
  • Projected to be Utah's largest gold producer.
  • Estimated contribution of over $4 billion (U.S.) to the Utah state economy.
  • Creation of approx. 400 direct jobs during construction and 300 direct jobs over 10 years of operation.

Notable Quotes

• "Revival Gold is now in the enviable position of controlling a large past-producing Carlin-style gold system -- a great exploration opportunity and a rarity outside the Nevada gold majors," said Hugh Agro, president and chief executive officer.
• "With economics benefiting from roads, power to site and the extensive technical information acquired over the years by Barrick, Mercur has the potential to be a transformational asset for Revival Gold's shareholders."
• "Revival Gold's discussions with state, county and municipal officials have been constructive, and we are humbled by the welcome in Utah. Barrick operated to high standards of environmental and community stewardship at Mercur and Revival Gold is committed to upholding those same high standards as we take Mercur into the future."