Mineral exploration company Colorado Resources has reached an agreement with SnipGold to acquire the remaining 49% stake in the KSP Project, situated in British Columbia, Canada.
Colorado Resources is set to pay C$1m ($0.79m) in cash, in addition to two million shares and a 2% net smelter royalty (NSR) on the property as purchase consideration for the acquisition.
SnipGold is a wholly owned subsidiary of Seabridge Gold, and is engaged in the exploration and expansion of gold and copper resources.
Both companies involved in the transaction are based in Canada.
Colorado Resources has enlisted Minvisory as its financial advisor for the transaction.
The company plans to raise approximately C$4.64m ($3.68m) concurrently via the issue of 12.72 million flow-through (FT) units, priced at C$0.36 ($0.28) each as part of a non-brokered private placement.
Each FT unit will comprise one flow-through common share in the company and one half of one warrant.
Goldcorp is expected to subscribe for the FT units as part of a donation arrangement structured by PearTree Securities.
It will also purchase 4.24 million units directly from Colorado Resources, representing approximately 14.25% of the issued and outstanding shares.
Private equity group Ibaera Capital has signed a joint venture (JV) agreement to acquire up to 47.5% stake in the Azumah Resources’s Wa Gold project in Ghana, West Africa.
Ibaera will pay $13.5m in two phases over a two-year period under the new arrangement.
The company will pay an initial sum of $11.25m to acquire 42.5% interest, followed by a subsequent investment of $2.25m to earn a further 5% interest.
Silver Range Resources has signed a letter of intent (LoI) with GGL Resources to acquire the Providence Greenstone Belt (PGB) project located in the Northwest Territories (NWT), Canada.
Silver Range is set to pay $1.03m in cash and 1% net smelter return royalty as part of the deal, as well as issue one million common shares to GGL in return for the right to explore the project for all metals and minerals except diamonds.
The company will pay $33,200 upon signing the binding LoI, and a further $1m milestone-based payment following the completion of the positive preliminary economic assessment.