Northern Vertex Capital plans to price private placement of securities

Company also intends to complete $9.5 million joint venture agreement

By Devika Patel

Knoxville, Tenn., Sept. 26 - Northern Vertex Capital Inc. said it will conduct a private placement to finance a joint venture agreement with Idaho State Gold Co., LLC.

The joint venture agreement is dated Sept. 21, and the companies have formed a joint venture entity named Lemhi Gold Trust, LLC.

Under the agreement, Lemhi Gold Trust has consolidated and acquired the Lemhi Gold Project from four vendors for a total acquisition cost of $9.5 million. Of the cost, $5.75 million was paid on Sept. 23, $2.65 million will be paid one year from closing, $150,000 will be paid on the second and third anniversaries of the closing date and $200,000 will be paid on the fourth through seventh anniversaries of closing.

Northern Vertex will be the operator at the Lemhi project, and the company plans an initial drill program of at least 30,000 feet to validate and expand the resource.

The company and Idaho State Gold have agreed to an initial funding commitment of $15 million, which will cover the cost of the acquisition and the initial work program.

Northern Vertex is a gold exploration and development company based in Vancouver, B.C.

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