The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
Strongbow Exploration Inc. June 22 reported that it has finalized the terms of its acquisition of the Sleitat and Coal Creek tin properties in Alaska.
The transaction will involve Strongbow buying the tin properties, from Osisko Gold Royalties Ltd. and Strongbow Director Ronald Netolitzky.
Netolitzky has been involved with Thor Gold, a former subsidiary of Solomon Resources Ltd., since the 1980s.
Osisko acquired an interest in the Sleitat and Coal Creek properties through the 2010 purchase of Brett Resources Inc., a former explorer of the two Alaska tin projects.
Thor holds a 20 percent undivided interest in the Sleitat property and Brett holds the remaining 80 percent undivided interest in Sleitat and a 100 percent interest in the Coal Creek property.
The agreement contemplates the direct acquisition of the properties by Strongbow, rather than the acquisition of Brett and Thor as originally announced in March.
Total consideration for the acquisition of the properties remains unchanged.
Strongbow has agreed to issue 5 million shares to Brett and 1.5 million shares to Thor.
Additionally, Brett will be granted a 1.75 percent net smelter return royalty, and Thor will receive a 0.25 percent NSR on the properties.
Osisko will have a first right of refusal on the sale of any future royalties on any of its properties.
Strongbow plans to complete a non-brokered private placement of at least C$1 million, of which Osisko has agreed to subscribe for C$200,000.
The closing of the acquisition and financing will result in Osisko and Brett holding a combined 7 million shares of Strongbow, or 27.3 percent of the post-closing issued shares of the company.
Prior to closing the deal, Strongbow will seek shareholder approval to create Osisko as a "control person" (as defined by the TSX Venture Exchange policies) at a shareholders meeting scheduled for July 22.
Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.
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