1.5% GOR on NuLegacy’s Red Hill property

Sold for ~ US$ 3 Million

VANCOUVER, British Columbia, May 06, 2020 (GLOBE NEWSWIRE) -- NuLegacy Gold (TSXV: NUG; OTCQB: NULG.F) is pleased to welcome Metalla Royalty & Streaming Ltd. (“Metalla”) as a new stakeholder in NuLegacy’s 108 square kilometer flagship Red Hill property in the heart of Cortez gold trend of North-Central Nevada.

Metalla has announced the purchase (detailed below) of one half of the 3% gross overriding royalty (GOR) currently held by Idaho Resources Corporation (“IRC”)^[*] on NuLegacy’s Red Hill property to close June 1, 2020.

Valuing GORs is a complicated business made easier in this instance by the straightforward nature of the purchase price for IRC; thus prorating the US$4 million purchase price for the total of 2% GOR purchased (1.5% GOR on Red Hill and 0.5% GOR on Anglo/Zeke claims) values a 1% GOR in the Red Hill project at ~US$2 million.ⁱ  By comparison NuLegacy Gold, which owns/controls a 100% working interest in the Red Hill property, has an aggregate market value of ~ C$32.5 million.ⁱⁱ

Please follow this link to an updated and refreshed Investor presentation:
https://nulegacygold.com/site/assets/files/6471/rift_anticline_as_gold ...

On April 27, 2020, Metalla entered into a share purchase agreement to acquire, on an arm’s length basis, 100% of the issued and outstanding shares of IRC for a purchase price of US$4 million payable in cash and shares of Metalla. Metalla is a precious metals royalty and streaming company listed for trading on the NYSE American and TSX Venture exchanges.

IRC is a privately held Nevada corporation which, upon closing of the Metalla transaction, will hold a 1.5% GOR over NuLegacy’s Red Hill property located on trend to the southeast of the Cortez operations and Goldrush project. IRC also holds a 0.5% gross overriding royalty on the Anglo/Zeke claims block located immediately northwest of and adjacent to NuLegacy’s Red Hill property and owned by Nevada Gold, and certain reversionary rights to acquire certain mineral claims under the Cortez joint venture plan of operations between Barrick Gold and Newmont Mining should such joint venture choose to relinquish their mineral claim interests. Metalla reports that closing of the IRC acquisition is subject to customary closing conditions and exchange approvals and is expected to occur on or around June 1, 2020.