Canadian mining exploration company Mosaic Minerals has signed an agreement to acquire 100% of the interest in the Gaboury project, in Témiscamingue, Québec and the 113 North project in Abitibi, Québec, from TSX-V-listed Fokus Mining.
To acquire 100% interest in the Gaboury and 113 North projects, Mosaic will issue five-million common shares of the company to Fokus Mining.
The latter will also retain a 2% net smelter royalty on both properties.
Following the transaction, Fokus Mining will own 10-million shares, or about 16%, of the company.
Upon closing of this transaction, the commitments required in the original agreements become obsolete and void.
In June 2021, Mosaic signed an option agreement with Fokus Mining to acquire up to 50% interest in the 113 North project, entailing the issuance of two-million shares to Fokus Mining; an investment of C$500 000 in exploration expenditure in the following four years; and the formation of a joint venture when Mosaic will be vested 50%.
In May 2021, Mosaic signed an option agreement with Fokus Mining to acquire up to 80% interest in the Gaboury project.
The agreement was structured in two tranches, to acquire 60% interest, and then to acquire 80% interest.
“We are very pleased to make this acquisition. The complete ownership of these two projects positions us advantageously for the future. We intend to become a key player in the base metals exploration sector in Quebec,” says Mosaic Minerals president and CEO Jonathan Hamel.
The transaction is subject to regulatory approval, including that of the Canadian Securities Exchange. The closing of the transaction is expected to occur on or about July 15.