IsoEnergy grants option to NxGold
One of the world’s best uranium explorers, IsoEnergy Ltd. (ISIN: CA46500E1079 / TSX-V: ISO), has with NxGold Ltd. agreed to grant an option for two years, which includes the acquisition of a 100% stake in IsoEnergy’s uranium property ‘Mountain Lake’ in Nunavut, Canada.
In accordance with the terms of the option agreement, NxGold must in return issue 900,000 common shares to IsoEnergy and pay CAD 20,000 in cash. At NxGold’s option, the option may be exercised on or before the second anniversary of the effective date of the agreement for an additional consideration of $ 1,000,000, payable in cash or in the form of NxGold shares. If NxGold decides to purchase the Mountain Lake property, IsoEnergy will be entitled to the following contingency payments in cash or in NxGold shares:
- With a uranium spot price of USD 50 or more, IsoEnergy will receive USD 410,000!
- With a uranium spot price of 75 USD or more, IsoEnergy will receive 615,000 USD!
- And from a uranium spot price of USD 100, IsoEnergy will receive USD 820,000!
The spot price-related payments expire ten years after the option is exercised.
Craig Parry, President and CEO of IsoEnergy, explains that ‘Mountain Lake’ was staked out by IsoEnergy in 2017, adding:
“This option agreement with NxGold shows that our strategy of cost-effective acquisitions in a poor uranium market environment is gradually paying off with the goal of a future sale. We welcome the opportunity to work with an award-winning company like NxGold and be part of its future success. This is a first-class result for all shareholders. “
IsoEnergy also has the one-time right to oblige NxGold to exercise the option and purchase the property, which can be done either six months or one year after the date of the option agreement. Should IsoEnergy force the option to be exercised, NxGold must issue a number of common shares to IsoEnergy to cover the purchase price of $ 1,000,000.
‘Mountain Lake’ covers 5,625 hectares. The property is home to a historic inferred £ 8.2 million mineral resource U3O8 with an average grade of 0.23% U3O8 in 1.6 million tons of ore. The uranium mineralization is in sandstone and falls flat from the upper limit of the basement to a depth of approximately 180 m below the surface.
With this transaction, IsoEnergy has made a clever move to be able to benefit from another uranium project without having to spend on exploration. The timing also seems perfect, as uranium prices are rising again.
Treasury Metals and Platinex Inc. consolidate mining properties
Also with the Canadian gold explorer Treasury Metals (ISIN: CA8946471064 / TSX: TML) things are going really well now! After only recently announcing the merger with First Mining, the company is now following up with a mining agreement.
Under the terms of this agreement, dated July 15, 2020, between Treasury and Treasury’s wholly-owned subsidiary, Goldeye Explorations Limited and Platinex Inc., there are a total of 208 unpatented mining claims in the Shining Tree District in northern Ontario and three Net Smelters Royalties’ sold to Platinex.
The mining claims cover approximately 5,045 hectares and are located next to Platinex’s ‘Shining Tree’ property. With this acquisition, Platinex now has the largest, on gold focused property package in the ‘Shining Tree District’ in northern Ontario. The area spans 21 km of the ‘Tyrrell Ridout’ Deformation Zone, which also houses IAMGOLD’s ‘Côté Lake’ gold deposit and Calda’s Gold ‘Juby’ deposit.
Source: Treasury Metals
In return for the acquisition of mining rights and royalties, Platinex issued 12,500,000 common shares and 5,000,000 non-transferable warrants to purchase common shares to Treasury. Each of the warrants issued entitles Treasury to purchase one Platinex common share at a price of $ 0.05 per share for a period of two years from the date of issue.
If Treasury exercises the warrants on or before September 1, 2020, the company will receive an additional, non-transferable ‘secondary’ warrant for the purchase of common shares for each warrant exercised. Each “secondary” warrant entitles the holder to purchase one additional Platinex common share at a price of $ 0.20 per share for a period of two years from the date the acquisition was completed.
The purchase agreement gives Treasury the right to appoint a candidate to the Platinex Board of Directors.
Greg Ferron, CEO of Treasury Metals Inc., added:
“The consolidation of the two ‘Shining Tree’ properties offers both parties numerous advantages and gives Treasury shareholders an equity position in another exciting gold district in Ontario. The recent acquisition of the neighboring gold deposit ‘Juby’ by Caldas Gold marks the increasing activity in the district. ”
James R. Trusler, Chairman of Platinex, is convinced that the supportive relationship with Treasury Metals brings with it an expanded marketing presence in order to rapidly develop the ‘Shining Tree’ property and emphasizes:
“We are looking forward to having access to more exploration resources so we can help explore the recently identified 21 km section of the Ridout Tyrrell Deformation Zone and other promising prospect areas on the property.”
The parties have agreed that the consideration shares will be included in a voluntary trust agreement, whereby 25% or 3,125,000 shares will be released 12, 15, 18 and 24 months after completion of the acquisition.
The royalties on the project include a 100% stake in three royalty agreements. Minera Goldeye Chile Limitada holds a 2% smelting royalty on the Sonia-Puma property, and AurCrest Resources Inc. holds a 1% net smelter royalty on nine mineral claims from the McFaulds Lake project ‘and a 2% Net Smelter Royalty holds Golden Harp Resources Inc. on 29 mineral claims.
Just a few days later, Treasury Metals announced that it had increased its stake in Platinex Inc. to approximately 10.633% of the issued and outstanding share capital.
Before the purchase of common shares and warrants, Treasury held 1,000,000 common shares, which was approximately 1% of the shares of Platinex issued and outstanding at that time. Following the new acquisition, Treasury now holds a total of 13,500,000 common shares and 5,000,000 warrants, which is approximately 10.633% of Platinex’s issued and outstanding shares. Assuming that the remaining 5,000,000 warrants are still exercised, the share package would increase to 18,500,000 ordinary shares, which then corresponds to 14.019% of the issued and outstanding shares of Platinex!
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