CGM acquires Osisko Mining’s DeSantis property in Canada

27 November 2017 (Last Updated November 27th, 2017 13:15)

Canadian Gold Miner (CGM) and Transition Metals have completed the acquisition of Osisko Mining's DeSantis property, which is located in the Timmins Gold Camp in Ontario, Canada.

Canadian Gold Miner (CGM) and Transition Metals have completed the acquisition of Osisko Mining’s DeSantis property, which is located in the Timmins Gold Camp in Ontario, Canada.

The move comes after CGM and Osisko Mining signed an agreement related to the acquisition last month.

CGM has concurrently earned an option on the Catharine property, which is a large exploration land package close to near CGM’s focus area south of Kirkland Lake, Ontario.

“We view the transaction as a significant milestone that should help us attract additional investment interest and accelerate our ability to create value moving forward.”

In exchange, the company offered 2.5 million common shares.

CGM CEO Greg Collins said: “We are pleased to have Osisko’s support as a significant shareholder as we look to aggressively advance our portfolio of gold projects in Ontario.

“In addition to adding two properties with good exploration potential to our portfolio, we view the transaction as a significant milestone that should help us attract additional investment interest and accelerate our ability to create value moving forward.”

Meanwhile, Osisko has completed a $1m private placement in CGM consisting five million units.

Following the completion of the transaction, Osisko now holds around 19.9% of the issued and outstanding common shares of CGM, while Transition continues to hold a 39.9% ownership interest.

The company has also earned a first right of refusal on any additional royalties that CGM may intend to sell on the DeSantis or Cote properties in the future.