Gold Hunter Resources (CSE: HUNT) has sold off all of its assets in Newfound and Labrador. The transaction, announced last night after the closing bell, will see Firefly Metals acquire both the Ramble and Tilt Cove properties from Gold Hunter.
Under the terms of the agreement, Firefly is to issue 30.3 million shares to Gold Hunter in exchange for the two properties, which is said to equate to a sales price of $15 million. Gold Hunter is expecting the acquisition of the Firefly shares to provide continued upside to shareholders.
The purchase is notable for Firefly Metals, whom was previously known as AuTeco Minerals, given that they own the Green Bay Copper-Gold project, which is contiguous to the Ramble and Tilt Cove properties and includes the Ming Mine. Found in the Baie Verte district in northeastern Newfoundland, the project contains a high grade copper resource of 39.2 million tonnes at 2.1% copper.
“The Baie Verte Peninsula offers tremendous potential. Our collected projects and partnerships in the district warrant an aggressive and capable team like Firefly to unlock their value. We’re excited for the future growth potential with Firefly and the benefits this partnership will bring to our shareholders and community,” commented Sean Kingsley, CEO of Gold Hunter.
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Completion of the transaction remains subject to shareholder and regulatory approval.
Gold Hunter Resources last traded at $0.24 on the CSE.
Information for this story was found via Sedar and 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.
