Canadian gold exploration company Giyani Gold had acquired 57.7% equity in newly launched company Canoe Mining Ventures.
The acquisition was carried out through a securities exchange agreement, where Giyani exchanged 100% of its common shares in its majority-held subsidiary 2299895 Ontario for 57.7% shareholding in Canoe.
According to the agreement, Canoe has acquired all of 2299895's Canadian exploration permits, including the Abbie-Lake Property, the Keating property and the Killins property, as well as other minor Canadian exploration properties.
Giyani executive chairperson Duane Parnham said the company will directly benefit from any successes Canoe has in its acquisition activities and exploration programme.
"I have joined Canoe's board of directors to help grow them into a leading Canada-focused mining company which will, in turn, grow the value of Giyani's holdings," he said.
With the receipt of the deal, Canoe Mining is expected to commence exploration and drilling projects on the Keating and Killins properties.
Meanwhile, Giyani will focus on its South African gold project and continue to evaluate acquisition targets in the area.
Giyani Gold noted that Canoe Mining was a well-funded company with a strong shareholder base.
Currently, the firm is working towards Abbie-Lake Keating gold project, Northeastern Ontario, Canada and Giyani Gold project in South Africa.
Image: Giyani Gold acquired 57.7% equity in Canoe Mining Ventures. Photo courtesy of Bertrand Rieger / Corbis.