Divestiture Of Non-Core Hasbrouck Property

 

RENO, NV - Allied Nevada Gold Corp. has signed a Letter Agreement with West Kirkland Mining Inc. (WKM) to divest its non-core Hasbrouck and Three Hills Properties for a total purchase price of US$30 million dollars.

The Hasbrouck property consists of twenty-eight (28) patented mining claims and five hundred eighty-three (583) unpatented mining claims and the nearby Three Hills property consists of six (6) patented mining claims and one hundred (100) unpatented mining claims located in Nye County and Esmeralda County, Nevada.

WKM paid Allied Nevada a non-refundable US$500,000 upon signing of the Agreement, and agreed to pay an additional US$19.5 million upon closing, expected to be no later than April 24, 2014. The final $10 million is to be paid to Allied Nevada within 30 months after the closing date, subject to Allied Nevada's option to retain an interest in the Property. In the event WKM does not meet its final US$10 million commitment to Allied Nevada, or if Allied Nevada takes the option to decline the final payment and retain and interest in the Property, the Property will be placed into a joint venture with WKM holding a 75% interest and Allied Nevada retaining a 25% interest.

The sale is subject to WKM's ability to secure financing and the execution of a definitive agreement containing customary closing conditions and regulatory approvals.