Canadian Gold Miner Corp. and Transition Metals Corp. have announced that CGM has entered into a non-binding letter of intent with Osisko Mining Inc. (OSK – TSX, "Osisko") whereby, subject to the execution of definitive agreements on terms acceptable to the parties, Osisko would assign its ownership interest in two exploration stage properties to CGM in exchange for stock of CGM.
In addition, Osisko would provide financing to CGM, on a private placement basis, in the amount of $1.0 million in exchange for stock of CGM. Once completed, the transaction is expected to result in Osisko owning approximately 19.9% of the issued and outstanding common shares of CGM. The properties to be assigned to CGM include the DeSantis property, a historical gold producer located in the heart of the Timmins Gold Camp, and the Catherine Property, a large exploration land package near CGM's focus area south of Kirkland Lake, Ontario.
Commenting on the transaction, CGM CEO, Greg Collins, stated: "We have been working hard over the past year to lay the foundation for a well-financed and robust Ontario focused gold exploration company and are excited to have Osisko's support as a key industry partner."
Scott McLean, President and CEO of Transition Metals, commented: "The letter of intent outlining an arrangement between Osisko and our subsidiary validates the quality of the gold projects Canadian Gold Miner has assembled. Furthermore it demonstrates the functionality of the project generator business model, where the spinning out of CGM has resulted in value added to XTM without direct equity dilution in the Company."
Read the article online at: https://www.globalminingreview.com/mining/13102017/canadian-gold-miner-corp-signs-loi-for-gold-properties/