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Be the first with the news that moves the market- O3 Mining (TSXV:OIII) has announced the sale of 627 claims, forming part of the Tortigny property in Quebec, to Troilus Gold
- Troilus has issued 1.7 million common shares to O3 as consideration, as well as a two per cent net smelter royalty agreement relating to the claims
- The company says that this will still allow it to see benefits from the Tortigny property while placing a greater focus on its other projects
- O3 now holds a total of 2 million shares, or roughly 2.2 per cent, in Troilus Gold
- O3 Mining (OIII) is currently steady at C$2.08 per share, with a market cap of $97.61 million
O3 Mining (TSXV:OIII) has announced the sale of 627 claims, forming part of the Tortigny property in Quebec, to Troilus Gold.
Located approximately 125 kilometres north of Chibougamau, the Tortigny property consists of a total 803 claims covering 42,469 hectares. Sitting on the Frotet-Evans Greenstone Belt, a broad range of exploration activities have been undertaken at the project since the 1950s.
During the early 1960s, several occurrences of base metals and gold were found in a program of drill testing. These include the Baie Moléon and Lac Coulombe copper and zinc deposits, as well as the Lessard deposit, which was discovered in 1970.
As consideration for the acquisition, Troilus Gold will issue a total of 1.7 million common shares to O3, as well as a two per cent net smelter royalty agreement relating to the claims. However, Troilus will have the right to a one per cent buy-back of the royalties in exchange for a C$1 million payment to O3.
In addition, O3 has agreed to either vote on these shares according to recommendations by the management of Troilus, or abstain from voting on matters entirely. That said, these conditions will only apply for a period of 18 months from the date of issuance.
With the transaction complete, O3 now holds a total of 2 million common shares in Troilus, representing 2.2 per cent of the total amount outstanding.
José Vizquerra Benavides, President and CEO of O3 Mining, said that the deal will allow the company to focus on its other assets, while continuing to reap some benefits from the Tortigny property.
“We are pleased to announce that we are continuing to maximize value for our shareholders through our go-forward strategy of finding strategic partners for our non-core exploration assets.
“The structure of this all-stock deal together with a royalty on the Tortigny property will enable us to benefit from Troilus’ success while continuing to develop our projects in Val D’Or, as well as our projects in Ontario,” he added.
O3 Mining (OIII) is currently steady at $2.08 per share, as of 10:16am EST.
