VANCOUVER (miningweekly.com) – Privately held explorer Canadian Gold Miner (CGM) and project generator Transition Metals have teamed up to accelerate exploration of the DeSantis gold project, in the Timmins Gold Camp, Ontario, which the companies acquired from Osisko Mining.
CGM, which is 40%-owned by Transition, also acquired an option on the Catharine property, a large exploration land package near CGM's focus area south of Kirkland Lake, in exchange for 2.5-million common shares of CGM, valued at C$0.20 apiece.
In parallel with the acquisition, Osisko also completed a C$1-million private placement in CGM comprising five-million units priced at $0.20 each, with each unit consisting of a common share and a half common share purchase warrant exercisable at C$0.35 for two years.
"We are pleased to have Osisko's support as a significant shareholder as we look to aggressively advance our portfolio of gold projects in Ontario. In addition to adding two properties with good exploration potential to our portfolio, we view the transaction as a significant milestone that should help us attract additional investment interest and accelerate our ability to create value moving forward,” said CGM CEO Greg Collins in a press release.
Osisko now owns about 19.9% of the issued and outstanding common shares of CGM, with Transition retaining a 39.9% stake.
Osisko holds rights to maintain its equity interest in CGM on a pro-rata basis in subsequent financings; appoint a director to the CGM board; a first right of refusal on any further royalties that CGM may sell on the DeSantis or Cote properties in the future; and a first right of offer on any royalties that CGM proposes to sell on its existing properties, including South Kirkland, West Matachewan, Elephant Head, Jumping Moose and Golden Elk, as long as it retains a 9.9% equity interest in CGM.