- Galleon Gold (GGO) has agreed to sell its non-core Quebec properties to Quebec Aur, a private company
- The properties include East Bay, Destor and Nelligan
- Quebec Aur paid C$250,000 and will issue 600,000 of its common shares for 100 per cent ownership of the properties
- Quebec Aur has entered into a letter of intent to be acquired by a publicly listed TSXV company
- If the acquisition does not occur by September 15, 2021, Quebec Aur may either return the properties to Galleon Gold or pay it $150,000
- Galleon Gold is a North American exploration and development company
- Galleon Gold (GGO) is up by 4.16 per cent and is currently trading at $0.125 per share
Galleon Gold (GGO) has agreed to sell its non-core Quebec properties to Quebec Aur, a private company.
The properties include East Bay, Destor and Nelligan.
Quebec Aur paid C$250,000 and will issue 600,000 of its common shares for 100 per cent ownership of the properties.
Quebec Aur has entered into a letter of intent to be acquired by a publicly listed TSXV company whereby each Quebec Aur share will be exchanged for one share of said company.
The price of the public company’s common shares is currently $0.25.
If the public company does not complete its acquisition of Quebec Aur by September 15, 2021, Quebec Aur shall, at its election, pay $150,000 to Galleon Gold or transfer the properties back to Galleon Gold.
Quebec Aur has granted a 1 per cent net smelter returns royalty on any of the properties’ claims that do not have an existing royalty.
Quebec Aur may repurchase the NSR for $1 million.
R. David Russell, CEO and President of Galleon Gold, commented,
“As we focus our efforts on the West Cache Gold Project in Timmins, we are very pleased to have reached an arrangement that will drive exploration on the Quebec properties. Our exposure to the upside through our equity interest in a newly formed Quebec-based gold company ensures we will benefit from the development and growth of this company going forward.”
Galleon Gold is a North American exploration and development company. Eric Sprott holds approximately 23 per cent of the company and is also a partner on its Neal Gold Project in Idaho.
Galleon Gold (GGO) is up by 4.16 per cent and is currently trading at $0.125 per share as of 9:30 am ET.
