Trillium Gold Acquires Final 16.5% Interest In Newman Todd Gold Property

Trillium Gold Mines (TSXV: TGM) has finally acquired the final portion of the Newman Todd Property, located in the Red Lake district of Ontario. The property, which Trillium previously owned an 83.5% stake in, will now see Trillium own a 100% interest.

The final 16.5% of the 198 hectare property was acquired from that of Heliostar Metals, formerly known as Redstar Gold Corp. The interest was acquired via a payment of $700,009.43 in cash as well as an earn-out arrangement.

The acquisition of the final portion of the property was initiated when the company received a pre-emptive right notice from Heliostar. The notice indicated that a firm, MTNASH Pty Ltd, an Australia-based company, had offered to acquire the 16.5% interest for $700,000 in cash and $2.0 million in ordinary shares of Nash. An earn-out of $1.0 million was also offered in the event that over 1.0 million ounces of gold were found to be on the property.

Given its pre-emptive rights, Trillium has a right to match any third party offer for the interest in the property. After analyzing the data, it appears Trillium elected to do so.

The odd price of $700,009.43 is a result of the deemed value of the MTNASH common shares. The company evidently was incorporated just two weeks prior to the offer being made on September 1, 2020, with the firm not even having an Australian business number, meaning it cannot conduct any business. The capital stock of MTNASH was also deemed as having a value of AUD$10, as this was the price paid for ten ordinary shares issued to the sole director, officer and shareholder of the company, Luke McFarlane, at the time of incorporation just two weeks prior.

The result, is that the $9.43 added to $700,000 appears to simply be the exchange rate between Australian dollars and that of Canadian dollars, making the total figure effectively an equal offer to that of what was offered by MTNASH, in addition to the $1.0 million earn out.

The company is currently waiting on confirmation from Heliostar Metals that it will honour the obligation on the terms set out.

Commenting on the acquisition of the remaining portion of the property, CEO Russell Starr stated, “Owning a 100% interest in the Newman Todd structure is a crucial acquisition and consistent with our view of maximizing shareholder value through a growth-oriented precious metals exploration company focused in the Americas.”

Trillium Gold last traded at $1.56 on the TSX Venture.


Information for this briefing was found via Sedar and Trillium Gold Mines. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

Giant Mining Encounters Native Copper As Hole MHB-34 Hits 563 Metres Depth

Verses Hits Commercialization Stage With Genius AI Platform

Related News

Osisko Gold Royalties Reports Prelim Q4 Revenues Of $50.7 Million

Osisko Gold Royalties (TSX: OR) last night after the bell revealed preliminary fourth quarter 2021...

Tuesday, January 11, 2022, 07:44:18 AM

Gold Soars to Highest Since February Amid Reports of Upcoming Chinese Imports

Gold prices soared to a new seven-week high, amid a decline in bonds and reports...

Friday, April 16, 2021, 04:08:00 PM

Trillium Gold Announces Final Terms Of Newman Todd Transaction

It appears our earlier report may have been slightly ahead of itself. Trillium Gold Mines...

Wednesday, November 25, 2020, 08:33:21 AM

Trillium Gold To Conduct Exploration South Of West Red Lake’s NT Zone

This morning, Trillium Gold Mines (TSXV: TGM) announced that it will be beginning exploration drilling...

Wednesday, July 15, 2020, 07:36:32 PM

Falcon Gold Signs MOU To Expand Central Canada Property

Falcon Gold (TSXV: FG) this morning announced that it has signed a memorandum of understanding...

Thursday, April 23, 2020, 09:22:12 AM