TSX-V-listed Manitou Gold has sold its Dryden properties, located in northern Ontario, to a company controlled by the founders and management of Ely Gold Royalties.
Manitou sold these properties for C$7-million in cash and received four-million shares of Dryden Gold, as well as a 1% net smelter royalty.
Manitou CEO Richard Murphy said that the company strongly believed in the potential of the Dryden properties and that it would participate in the future upside of these properties through its shareholding in Dryden Gold, as well as its retained net smelter royalty.
Manitou will become a significant shareholder in Dryden, which will pursue an initial public offering later this year.