It appears our earlier report may have been slightly ahead of itself. Trillium Gold Mines (TSXV: TGM) this morning announced that it has entered into a binding agreement with Heliostar Metals to acquire the final 16.5% interest in the Newman Todd property, located in the Red Lake region of Ontario. The acquisition upon close will bring Trillium’s interest in the property to 100%.
The revised agreement between the two firms will see the transaction occur via a combination of cash and shares. Trillium is to make a C$700,000 cash payment to Heliostar, as well as issue 650,000 common shares to Heliostar. A clause also exits on the property, indicating that should more than 1.0 million ounces of gold in be discovered on the property in terms of a measured and indicated resource, a cash payment of $1.0 million will also be made to Heliostar.
The acquisition of the final portion of the property follows an offer being made by a third party in September 2020 for the interest. With Trillium having right of first refusal, the company was able to make a superior offer while also exercising this right.
“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. We will soon emerge as the one of largest land holders in the Red Lake Gold Camp having acquired some of the most highly perspective property packages in recent months.”Russell Starr. CEO of Trillium Gold
Trillium Gold last traded at $1.52 on the TSX Venture.
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