Viva Gold Updates Services Agreement with CEO

Rhea-AI Summary

Viva Gold Corp. has updated its Consulting Services Agreement with CEO James Hesketh, effective September 20, 2021. The new terms replace a prior agreement from April 2017 and include a 20% reduction in annual compensation to USD $120,000, with potential bonuses of up to USD $120,000. The agreement allows for cancellation with 30 days' notice and provides for up to 24 months of severance upon a change of control. Viva Gold operates the Tonopah Gold Project in Nevada, holding 100% ownership of approximately 10,500 acres of land with significant gold resources.

Positive

• Updated agreement with CEO includes a 20% reduction in annual compensation, indicating cost management.
• CEO is entitled to equity-based compensation, aligning management interests with shareholders.
• Viva Gold controls the Tonopah Gold Project, a significant asset with high-grade gold resources.

Negative

• The reduction in CEO's compensation may reflect financial constraints or operational challenges.
• The potential for 24 months of severance pay on a change of control could indicate instability or risk in management.

VANCOUVER, BC / ACCESSWIRE / September 20, 2021 / Viva Gold Corp. (TSXV:VAU)(OTCQB:VAUCF)(FSE:7PB) (the "Company" or "Viva") is pleased to announce that it has updated its Consulting Services Agreement ("Agreement") with Mr. James Hesketh, through his consulting company Kalex LLC., replacing his existing agreement dated April 2017. Under the Agreement, Mr. Hesketh provides the services and performs all required duties as President and Chief Executive Officer to Viva Gold Corp. He develops, recommends to the board of directors and implements general corporate, administrative, technical, engineering and other management systems as is considered necessary or advisable for proper management of the Company. Mr. Hesketh is also a Director of the Company, elected by shareholders. The Agreement contains terms and conditions that are typical to other agreements of this type in the junior mining industry. Terms of the Agreement were approved by the Company's Compensation Committee made up of independent directors and outlines a yearly compensation of USD $120,000 which includes a 20% reduction in monthly payments in relation to the prior 2017 Agreement. Mr. Hesketh is entitled to equity-based compensation subject to the terms of the Company's Stock Option Plan and TSXV policies and an annual bonus not exceeding U.S. $120,000.

The Agreement may be cancelled at any time on 30 days' notice with a severance payment, and it incorporates, in certain circumstances, up to 24-months of severance pay on change of control of the Company.

About Viva Gold Corp:

Viva Gold is a gold exploration and project development company with a focus on Nevada. Viva holds 100% of the advanced Tonopah Gold Project, a large land position of approximately 10,500 acres with demonstrated high-grade measured, indicated and inferred gold resources, located on the prolific Walker Lane gold trend in Nevada, about 30-minutes' drive south-east of the Round Mountain mine of Kinross Gold and 20-minutes' drive from the Town of Tonopah. Viva's management team has extensive experience in mineral exploration, mine development and production and are supported by a Board of Directors and advisors who are proven mine finders, deal makers and financiers. Viva trades on the TSX-V as "VAU", on the OTCQB in the US as "VAUCF" and on the Frankfurt exchange under "7PB". For additional information on Viva Gold and the Tonopah Gold Project, please visit our website: www.vivagoldcorp.com.

For further information, please contact:

James Hesketh, President & CEO
(720) 291-1775
jhesketh@vivagoldcorp.com

Valerie Kimball, Director Investor Relations
(720) 933-1150
vkimball@vivagoldcorp.com

Renmark Financial Communications Inc.
Daniel Gordon: dgordon@renmarkfinancial.com
Tel: (416) 644-2020 or (212) 812-7680
www.renmarkfinancial.com

SOURCE: Viva Gold Corp.

View source version on accesswire.com:
https://www.accesswire.com/664900/Viva-Gold-Updates-Services-Agreement-with-CEO

FAQ

What are the new terms of the Consulting Services Agreement for VAUCF?

The updated Consulting Services Agreement with CEO James Hesketh includes an annual compensation of USD $120,000, a 20% reduction from the previous agreement, and bonuses up to USD $120,000.

When was the Consulting Services Agreement updated for Viva Gold Corp. (VAUCF)?

The agreement was updated on September 20, 2021.

What is the significance of the Tonopah Gold Project for Viva Gold Corp. (VAUCF)?

The Tonopah Gold Project is significant as it covers approximately 10,500 acres with demonstrated high-grade gold resources, crucial for the company's growth and revenue.

How is the CEO's compensation structured under the new agreement for VAUCF?

The CEO's compensation includes a base salary of USD $120,000, with the possibility of equity-based compensation and an annual bonus not exceeding USD $120,000.

What termination conditions are included in the new Consulting Services Agreement for VAUCF?

The agreement can be cancelled at any time with 30 days' notice and includes provisions for up to 24 months of severance pay in case of a change of control.