Atac vends its half of Dawson Gold JV

Atac Resources Ltd. Aug. 2 reported the conclusion of an agreement to sell Arcus Development Group Inc. its 50 percent interest in the Dawson Gold Joint Venture.

Formed in 2012, the JV contains four mineral properties - Dan Man, Touleary, Green Gulch and Shamrock - located in Yukon Territory's White Gold District.

In exchange for full ownership of the JV properties, Arcus will issue Atac 10,869,910 common shares, which will result in Atac holding 19.99 percent of Arcus' issued shares.

Arcus also will issue to Atac 5 million warrants, which will allow it to purchase another 5 million Arcus shares at a price of C20 cents each for a period of five years.

Atac will also retain a 1 percent net smelter return royalty interest in any future production from any of the four properties.

-SHANE LASLEY