The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
Klondike Gold Corp. July 18 reported the sale of seven mineral properties in southeastern British Columbia - Red Point, Clubine, Ron Gold, Panda Irishman, Cruz-Midway, Thea, and Quartz Mountain - to Rise Resources Inc. As an initial payment, Klondike received C$50,000 in cash: 1.5 million Rise shares and 1.5 million Rise warrants, which allows Klondike to purchase 1.5 million additional Rise shares for C22.7 cents each until July 13, 2018.
The common shares now owned by Klondike represent 4.56 percent of Rise's issued and outstanding shares on closing.
To complete the acquisition, Rise Resources must pay an additional C$150,000 in cash, and issue 2 million additional Rise shares and 1 million Rise warrants in a year.
Klondike Gold will retain a 2 percent net smelter return royalty, half of which can be purchased by Rise for C$1 million.
"This strategy allows Klondike Gold shareholders significant leverage to a portfolio of highly prospective British Columbia gold and base metal properties while keeping the company's financial and exploration focus on its core Yukon assets," explained Klondike Gold President and CEO Peter Tallman.
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.
Reader Comments(0)