Rob McEwen Takes 37% Stake In Satori Resources After Vending In Private Exploration Co
Rob McEwen has completed his previously announced takeover of Satori Resources (TSXV: BUD). The refreshed firm will focus primarily on exploration in the shadows of headframes of some of Canada’s most prominent mines, following the acquisition of McEwen’s private resource company, Apollo Exploration.
The transaction saw Apollo acquired via the issuance of 60.0 million shares at a price of $0.05 per each, resulting in McEwen owning a 37.6% stake in the resulting company. McEwen has also gained certain rights, including a pre-emptive right to maintain his pro rata interest in Satori, and the right of first refusal on royalty or metals streaming financings offered on Satori’s Tartan Lake Gold Mine project in the Flin Flon region.
Additionally, McEwen has obtained the right to elect two members to the firms board, one of which will be his son Alex McEwen. Alex is co-founder and owner of Remote Power Corp, which focuses on electrifying industrial projects such as mines.
As part of the transaction, Apollo brought three projects to Satori. What appears to be the flagship, the Malartic South Project, is found due south of Agnico Eagle’s Canadian Malartic Property, and has potential for both gold and copper. Half of the property is said to contain sedimentary rocks akin to what hosts the Canadian Malartic deposits, while the other half is host to felsic intrusive rocks that are prospective for copper.
Also included in the transaction is the HEES Project, which is near to Barrick Gold’s Hemlo Mine, with the project being classified as “early.” Finally, the Hammond Reef North and South Projects, found south of Agnico’s Hammond Reef Gold Project, are said to be prospective for large tonnage low grade gold deposits. An initial drill program is being planned.
With the transaction now complete, Satori is awaiting approval to change its name to Canadian Gold Corp, and its ticker symbol to CGC, with further changes to management slated to be announced in the near term. The company also reported has $2.0 million in cash and no debt on its balance sheet.
Satori Resources last traded at $0.24 on the TSX Venture.
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