Gold explorer and developer 55 North Mining has entered into a definitive agreement with gold junior European Cobalt, which will acquire the rights, title and interest in the Edleston gold project, south of the Timmins gold camp, in Ontario.
The definitive agreement is subject to shareholder approval and a shareholder meeting is scheduled for August 10.
Under the terms of the agreement, European Cobalt paid a non-refundable cash payment of C$100 000, and upon closing, will pay a cash payment of C$650 000 and issue 100-million common shares at a deemed issue price of A$0.02 apiece on the ASX, to 55 North.
55 North CEO Bruce Reid says the sale of this asset is the latest part of a reorganisation that started in January 2017. “The board believes that this sale unlocks unrecognised value in these assets and, in the hands of European Cobalt, 55 North shareholders will continue to benefit on the upside.”