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Be the first with the news that moves the market- Blue Thunder (TSXV:Blue) and O3 Mining (APH:OIII) have advanced the acquisition of two gold properties in Quebec
- The companies signed a letter of intent in February, but the acquisition papers were signed today
- The two properties, Fancamp and Embry, are both located in the Chibougamau Mining District of Quebec
- In exchange, O3 has acquired an 8.6 per cent stake in Blue Thunder
- Blue Thunder (TSXV:BLUE) has a market cap of C$3.3 million
Blue Thunder (TSXV:BLUE) has signed an agreement with O3 Mining to purchase the Fancamp and Embery gold properties in Chibougamau, Quebec.
The deal between the young junior Blue Thunder and the established O3 has given the exploration company a significant shot in the arm during an exceptionally turbulent time for resources companies.
The deal gives Blue Thunder 100 per cent of the exploration rights to the two gold properties, in exchange for approximately 4.5 million Blue Thunder shares passing to O3.
That gives O3 8.6 per cent of the offered shares of the company.
O3 will also receive a few other bits and pieces, including a two per cent net smelter return if and when production begins at any sites, a C$750,000 option for Blue to buy back a percentage of that smelter return, a couple of voluntary hold periods on shares and some other minor details.
The share purchase is subject to a four month regulatory hold period before the transaction goes through.
Blue Thunder CEO, Robert Cintis, said he welcomed O3 as a new strategic and major shareholder of Blue Thunder.
“The signing of the agreement is an exciting milestone for the company and enhances Blue Thunder’s strategy of consolidating prospective ground along strike from known gold deposits, focused in the Chibougamau gold district.
“With this acquisition, Blue Thunder now holds approximately 51,000 hectraes of exploration ground and this strengthens Blue Thunder’s position as the largest exploration landholder in the Chibougamau gold district,” he said.
For their part, O3’s CEO and President, Jose Vizquerra, expressed excitement at coming on board as a major shareholder in Blue Thunder.
“By vending these properties into Blue Thunder…we gain exposure to a much larger property package in what is a quickly emerging gold district in Quebec.
“The divestment is part of our on-going strategy to put our non-core assets into the hands of well backed and technically strong operators,” Jose said.
As for what Blue Thunder are acquiring, Fancamp particularly looks a good exploration prospect.
The property has 37 gold claims, covers just under 2,000 hectares and is sandwiched between a couple of other Blue Thunder properties, which should reduce exploration costs with some resource sharing across sites.
Embry is an earlier stage project, with 12 noted claims so far on the 668 hectare property.
Blue Thunder (BLUE) is trading at $0.07 per share before market open.
