Nevada Canyon Gold Corp. (OTCQX: NGLD) has finalized the sale of its Swales Gold Property lease to Metals One Nevada Inc., a subsidiary of Metals One Plc, marking another shift in the ownership landscape along Nevada’s prolific Carlin Trend. The deal, which closed with a $100,000 cash payment and the retention of a 2% net smelter royalty for Nevada Canyon, reflects the ongoing appetite for gold exploration assets in one of the world’s most productive mining regions.
The Swales lease originally covered 40 unpatented mining claims, but Metals One has since expanded the property by adding 99 more claims. The combined area now totals about 2,780 acres and 139 unpatented claims, giving Metals One a significant foothold in Elko County.
This part of Nevada is a magnet for gold mining activity. The Carlin Trend is home to eight active gold mines, including the massive Gold Quarry and Goldstrike operations run by Nevada Gold Mines. These mines have collectively produced over 100 million ounces of gold, with more than 21 million ounces still in reserves, according to data from the Nevada Bureau of Mines and Nevada Gold Mines.
For Nevada Canyon, the sale fits into a broader strategy. The company, headquartered in Reno, focuses on creating and acquiring mineral royalties, providing precious metals financing, and accelerating exploration projects. By selling the Swales lease but keeping a royalty interest, Nevada Canyon positions itself to benefit from any future production on the property without taking on direct exploration risk.
The company’s business model is structured around three core pillars: first, it focuses on mineral royalty creation and acquisition, which involves generating royalties through low-cost property acquisition and early-stage exploration, as well as purchasing royalties from other parties to build a diversified portfolio; second, it engages in precious-metals and exploration financing, providing upfront capital to mining companies in exchange for a share of future revenues or production, thereby supporting the development and expansion of mining projects without direct operational involvement; and third, it accelerates exploration projects by partnering with quality companies to advance early-stage assets, retaining royalty interests and benefiting from pre-production payments, all of which collectively minimize risk and provide multiple avenues for cash flow and value creation.
This approach allows Nevada Canyon to maintain exposure to Nevada’s mining sector while managing risk and capital allocation.
The Carlin Trend is not just a historical curiosity, it remains one of the world’s richest gold belts. The area’s infrastructure is well-developed, and Elko County is known for its pro-mining stance. The Swales Property sits about 13 miles northeast of the Gold Quarry Mine and 16 miles east-southeast of the Goldstrike Mine, both of which are major contributors to Nevada’s gold output.
With Metals One now holding the lease and expanding its footprint, the Swales Property could see increased exploration activity. For Nevada Canyon, the 2% net smelter royalty means it will receive a share of any future gold production, potentially turning this transaction into a long-term revenue stream.
The transaction highlights how royalty deals can provide exposure to potential upside in gold mining without the operational risks. Nevada Canyon’s decision to retain a royalty interest aligns with its strategy of building a portfolio of income-generating assets in established mining districts.
