Canada-based San Gold has signed a non-binding letter of intent (LoI) to buy Kerr Mines which will give it ownership of Copperstone gold mine in Arizona.
As per the LoI, Kerr Mines shareholders will receive the 'a number of' San Gold shares against their current Kerr Mines shares. The exchange ratio of the share swap will be decided later.
San Gold currently has around 373 million outstanding shares, whereas Kerr Mines has 1.3 billion outstanding shares.
The transaction is subject to several conditions, including execution of definitive agreement by 31 August 2014, completion of satisfactory due diligence, receipt of all necessary approvals, fairness opinions and shareholder approval.
Denison Mines has entered into a deal with a consortium of underwriters represented by Dundee Securities to sell its 8,050,000 common shares at C$1.62 ($1.5) per share or a total price of approximately $13m ($12m).
The consortium includes Paradigm Capital, Raymond James, Scotiabank, BMO Capital Markets and Cormark Securities.
The underwriters will also have the option to purchase 15% additional shares any time within 48 hours before the closing of the offering.
Closure of the deal, which is subject to regulatory approvals including approval of the Toronto and and the New York stock exchanges, is expected to happen by 12 August.
Kiska Metals has signed an agreement with Laurion Mineral Exploration to purchase 51% stake in the Midlothian project in the Larder Lake mining division, Ontario.
Kiska already owns 49% of the project and with the acquisition will make the company 100% owner of the project.
Kiska will issue a net smelter royalty of 2.5% for precious metals such as platinum, rhodium, gold, iridium, osmium, palladium, rhenium, ruthenium and silver, and 1.5% for all other metals extracted from the Midlothian Project to Laurion.
In addition, Kiska will also pay $25,000 in cash and give up the 500,000 common shares it holds in Laurion.
Bralorne Gold Mines has entered into a deal with Avino Silver & Gold Mines to get C$1.2m ($1.1m) loan for general working capital.
Bralone has initially received an advance of C$500,000 ($464,678), at an interest rate of 12% per annum and is expecting to receive the remaining amount of C$$750,000.
Mason Graphite has signed a cooperation agreement with Conseil des Innus de Pessamit to start the pre-construction phase of its 100%-owned graphite project located near Lac Gueret in northern Quebec, Canada.
The Lac Gueret property, which will be an open-pit graphite mine, is expected to produce 50,000t of concentrate a year.
In addition, the mine is also expected to have other infrastructure for a concentrator and buildings for maintenance, office and personnel.
Construction work on the project is expected to begin in 2015.
Once operational, the project is expected to create around 80 direct jobs in the area.
Image: Several deals were signed this week. Photo: courtesy of adamr / FreeDigitalPhotos.net.