- Northway Resource (NTW) intends to purchase the privately held Kenorland Minerals through a reverse takeover.
- In a share-for-share deal, Kenorland Minerals shareholders will be offered one new share in Northway for two previously held shares
- Northway will acquire Kenorland’s Frotet project in Quebec, which today revealed impressive gold results
- The highest result reached 29 metres at 8.47 grams per tonne, including 11.13 metres at 18.43 grams per tonne
- Northway Resource (NTW) is currently in a trading halt and last traded at C$0.14 per share
Northway Resource (NTW) is purchasing the privately held Kenorland Minerals in a reverse takeover agreement.
Kenorland already owns six million Northway shares, which constitutes a 14 per cent stake in the business. For this reason, the sale must be approved by all a majority of minority shareholders in both Northway and Kenorland.
Through the proposed transaction common shareholders in Kenorland will be offered one new share in Northway for two previously held shares. Northway expects to issue 30 million new shares through the process.
This a massive dilution, as Northway only has 40 million shares out on its current public float.
The acquisition was largely motivated by Kenorland Frotet project in Quebec, where it recently completed a maiden 15 drill hole program.
The company hit a 29.08 metre result that graded at 8.47 grams per tonne gold, including 11.13 metres at 18.43 grams per tonne. Of the 15 holes on the property, eight returned significantly high grades of gold mineralization.
The drills were sunk at various intervals across 1.5 kilometres of strike within a 500-metre corridor. The single highest grade returned was 3.75 metres at 23 grams per tonne gold and contained a smaller strike of 0.76 metres at 83.3 grams per tonne gold.
President of Kenorland Zach Flood said the results were nothing short of amazing.
Further to this, Kenorland has optioned the Frotet project to Sumitomo Metal Mining Canada, a subsidiary of the Japanese Giant Sumitomo Mining, with the latter company paying for the maiden program.
Northway Resource (NTW) is currently in a trading halt and last traded at C$0.14 per share.