PATRIOT GOLD CORP

Patriot Gold Corp

Overview

Patriot Gold Corp is a Nevada corporation focused on natural resource exploration and mining, with an emphasis on gold. The company operates primarily as a royalty holder rather than a direct mine operator, generating revenue from royalty interests on mining properties.

Key business activities

• Acquire and manage royalty interests and option agreements on mineral properties.
• Explore and develop early-stage gold projects through partners and service providers.
• Occasionally sell underlying mining interests while retaining royalty streams (for example, Moss Mine and Bruner transactions).

Material property interest

• Moss Mine Royalty (Arizona)
  • 3% Net Smelter Returns (NSR) royalty on production.
  • Covers approximately 5 patented mining parcels and ~400 unpatented mining claims, plus a one-mile area of interest.
  • Operator: Golden Vertex Corp.
  • Royalty payments are due within 30 days after the operator receives production payments.
  • The Moss Mine royalty is Patriot’s principal asset; the operator controls development, production, and permitting.

Other property interests

• Vernal Property (Nevada)

  • 100% ownership, subject to a 3% royalty retained by MinQuest on net proceeds from smelting/refining after transportation costs.
  • Contains 12 unpatented mining claims (~248 acres).
  • Early-stage exploration with ongoing evaluation.
  • One-time option to purchase portions of MinQuest’s royalty at US$1,000,000 per 1% acquired, exercisable after completion of a bankable feasibility study.

• Windy Peak Property (Nevada)

  • 118 unpatented mining claims (~2,419 acres) in west-central Nevada near Fallon/Middlegate.
  • Early-stage exploration with mapping, trenching, geochemical sampling and prior drilling.
  • Held as unpatented federal land claims under BLM regulations.

• Bruner Royalty (Nevada)

  • 2% NSR on the Bruner Gold Project and claims within a two-mile area of interest.
  • Operator: Endeavour Silver Corp.
  • Patriot does not own the Bruner project; the Bruner royalty is considered non-material.

• Related activities

  • Provex Resources, Inc. (later Goldbase, Inc.) was formed in 2010 to assume rights under Bruner/Vernal option agreements.
  • In 2017 Canamex Resources Corp. purchased Patriot’s interest in Bruner for US$1,000,000 cash; Patriot retained a 2% NSR and granted an option for Canamex to buy down part of the NSR.

Corporate structure and operations

• Subsidiaries: Provex Resources, Inc. (now Goldbase, Inc.) and Patriot Gold Canada Corp.
• Management and staffing are handled on an as-needed basis; the company uses service providers and exploration partners for administrative and field work.
• Revenue model: primarily royalty income from mining operations, with the Moss Mine NSR as the principal revenue source when in production.

Financial and liquidity context

• 2025 financing: related-party loans totaling CAD 900,000, bearing 10% interest, repayable within 12 months and prepayable at any time.
• Management expects the potential need for additional funding for planned operations over the next 12 months, in light of a temporary cessation of Moss Mine royalty payments.
• The cessation of Moss Mine royalties has created substantial doubt about the company’s ability to continue as a going concern without additional financing or cost reductions.
• Legal action: In 2024 Patriot initiated litigation in Arizona against Golden Vertex regarding unpaid Moss Mine royalties. A Chapter 15 filing and related court actions have affected cash flows and distributions, and court proceedings continue concerning turnover and receipt of royalties and related assets.
• Historical transaction: Patriot recognized a US$1,000,000 gain from the sale of the Bruner property in 2017. Moss Mine royalty cash flows have been a component of the company’s historical revenue.

Regulatory and operational context

• The company operates within the regulatory frameworks that govern mining and environmental compliance, including SMCRA, the Clean Water Act and BLM regulations; these frameworks can affect permitting timelines and compliance costs.
• The Moss Mine royalty is a real property interest that remains with the royalty holder and is binding on current and future owners; Patriot’s rights are limited to royalty proceeds rather than operational control.

Summary

Patriot Gold Corp is a royalty-focused natural resource company concentrated on gold properties in the southwestern United States. Its principal asset is a 3% NSR royalty on the Moss Mine in Arizona. The company also holds exploration-stage interests at Vernal and Windy Peak in Nevada and retains a 2% NSR on Bruner. Operations emphasize acquisition and management of royalties and option agreements, supported by an as-needed staffing model and partnerships. Current funding is supplemented by related-party loans, and the company is managing liquidity and legal issues related to Moss Mine royalty collections.