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Be the first with the news that moves the market- Yamana Gold (YRI) has traded a back-in right regarding the Lemhi project in Idaho for a stake in the site’s current explorer, CSE-listed Freeman Gold (FMAN)
- Yamana exchanged the right for just over four million shares in Freeman Gold, which represents a five per cent stake in the junior mineral exploration company
- With the Lemhi project now free from all historical back-in rights, Freeman Gold will continue its plan to de-risk operations at the site and develop a maiden resource estimate
- Having only listed back in November, news of the deal with Yamana has caused Freeman Gold’s share price to jump more than 13 per cent to trade for C$0.59
- Meanwhile, Yamana Gold (YRI) is up 3.57 per cent and is trading at $8.12 per share
Yamana Gold (YRI) has traded a back-in right regarding the Lemhi project in Idaho for a stake in the site’s current explorer, CSE-listed Freeman Gold (FMAN).
Freeman Gold acquired and extinguished the right from Yamana in exchange for just over four million shares.
As a result, once the deal finalises Yamana will own a five per cent stake Freeman Gold, making it a significant shareholder in the junior mineral exploration company.
Will Randall, President & CEO of Freeman, said the company was delighted to welcome Yamana as a strategic shareholder.
“Having a major gold producer with Yamana’s calibre take a significant position in our company is a major vote of confidence in the project and the team we have assembled. We hope to work together over the coming months and years.
“The transaction removes the existing back-in agreement on five of our patented claims which is a major step in de-risking the Lemhi project,” he said.
The project, which stretches across 30 square kilometres, is currently being explored for near surface oxide gold mineralization and is surrounded by established gold projects run by Canadian mining giants Barrick and Agnico Eagle.
With the Lemhi project now free from all historical back-in rights, Freeman Gold will continue its plan to de-risk operations at the site and develop a maiden resource estimate.
Having only listed back in November, news of the deal with Yamana has caused Freeman Gold’s share price to jump more than 13 per cent to trade for C$0.59. At this newly improved price, Yamana’s stake in Freeman Gold is currently valued at around $2.38 million.
Yamana Gold (YRI) is up 3.57 per cent and is trading at $8.12 per share at 1:57pm EDT.
