Subscribe
Be the first with the news that moves the market- Radisson Mining Resources (RDS) has acquired the New Alger Project in Quebec, as part of a strategic relationship with Renforth Resources
- The company acquired 100 per cent of the project for 12 million Class A common shares and C$500,000 in cash
- A further $1.5 million in cash will be paid upon moving the project to commercial production of a sales of the project for at least $40 million
- The transaction expands Radisson’s claim portfolio in the Bousquet-Cadillac mining camp, which includes the company’s O’Brien Project
- Radisson Mining Resources (RDS) is currently steady at 30 cents per share, as of 12:49pm EDT
Radisson Mining Resources (RDS) has acquired the New Alger Project in Quebec, as part of a strategic relationship with Renforth Resources.
Under the terms of the agreement, Radisson acquired 100 per cent of the project via the issuance of 12 million Class A common shares to Renforth upon closing, along with C$500,000 in cash.
A further $1.5 million will be paid upon moving the New Alger Project into commercial production, or upon selling the project for at least $40 million.
The acquisition bolsters Radisson’s portfolio of mining claims in the Bousquet-Cadillac mining camp to a total of 5,839 hectares, which represents a nine-fold increase compared to its pre-transaction holding of just 637 hectares.
Radisson now controls approximately 9.5 kilometres of the Cadillac Break, which includes 3.2 kilometres to the east and 2.7 kilometres to the west of the past-producing O’Brien Mine, which generated 587,000 ounces of gold from 1926 to 1957 at an average grade of 15.25 grams per tonne.
The deal between Radisson and Renforth forms part of a long-term strategic relationship, which aims to leverage the regional synergies of the two companies and unlock significant shareholder value. It includes an investment by Radisson into Renforth, after which Radisson will hold a 9.6 per cent interest in Renforth, while Renforth will hold a 5.7 per cent interest in Radisson.
Mario Bouchard, CEO of Radission Mining Resources, said he is delighted to have closed the transaction with Renforth.
“We believe the transaction significantly increases the attractiveness of the O’Brien Project.
“Radisson’s claims now cover a very prospective land package including an approximate six kilometre strike length along the prolific Cadillac Break, comprising almost three kilometres to the east and west of the old O’Brien Mine, which has historically been the highest-grade gold mine in Quebec,” he added.
Radisson Mining Resources (RDS) is currently steady at 30 cents per share, as of 12:49pm EDT.
