First Mining Gold (TSX: FF) has entered into an arrangement to sell their Cameron Gold Project in Ontario. The arrangement will see the project sold to Oronova Energy (TSXV: ONV.H) in a transaction that is backed by the Fiore Group.
The arrangement will see First Mining sell the project for total consideration of $27 million, with consideration set to consist of $5.0 million in cash, a future cash payment of at least $2.0 million, and 80 million common shares of Oronova, making First Mining the largest shareholder of the company.
Post-transaction, Oronova is set to be renamed to Seva Mining Corp, with First Mining retaining the right to nominate two directors as part of an investor rights agreement. As part of the arrangement, Oronova has also agreed to conduct a private placement to raise proceeds of up to $15.0 million via the sale of 60 million common shares at a price of $0.25 per each.
The Cameron Project consists of 24 patented claims, 2,001 mining claims, seven licenses of occupation and four mining leases covering a combined 53,000 hectares of land 80 kilometres to the southeast of Kenora, Ontario. The project contains three deposits, alongside several prospective gold showings across 30 kilometres of prospective mineralized structures.
READ: First Mining Updates Economics On Springpole, Outlines US$2.1 Billion After Tax NPV
A 2017 mineral resource estimate outlined 464,000 contained ounces of gold at a grade of 2.61 g/t gold in the measured and indicated category, and a further 533,000 ounces at 2.54 g/t gold within the inferred category.
Additionally, 14,000 tonnes of mineralized material with average grades of 4.46 g/t gold sits on surface from historic underground development conducted in 1988.
“We are very excited to enter into this partnership with the Fiore Group to advance the Cameron Gold Project. he Fiore Group has a strong track record of creating shareholder value, with a focus and demonstrated success in building meaningful relationships and partnerships with Indigenous communities in Canada. This transaction will put in place a dedicated team which will be well funded to advance the project, benefitting the local and Indigenous communities around the Cameron Project,” commented Dan Wilton, CEO of First Mining.
First Mining last traded at $0.34 on the TSX.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
