- Details
-
Created: Wednesday, 04 September 2013 23:19
Mistango River Resources Inc. (CNSX: MIS) (“Mistango”) announced today that it has entered into a royalty purchase agreement (the “Agreement”) with Premier Royalty Inc. (“Premier”), an arm’s length third party, to sell Mistango’s 2% net smelter return royalty (the “Royalty”) on Kirkland Lake Gold Inc.’s (“Kirkland”) HM Property (the “Property”), located in Kirkland Lake, Ontario. Pursuant to the Agreement, and subject to its terms and conditions, Mistango will sell the Royalty to Premier in consideration for a cash payment of $1,250,000 CDN and the issuance to Mistango of 100,000 common shares of Premier (the “Consideration Shares”), subject to applicable regulatory approval.
Conditions to closing include conditions typical for a transaction of this type, such as completion of legal due diligence and receipt of regulatory approvals, as well as a condition that registration of the Property in Kirkland’s name be confirmed. Additionally, in the event Premier is acquired by Sandstorm Gold Ltd. (“Sandstorm”) prior to closing of the sale of the Royalty, closing is conditional on Sandstorm agreeing to issue common shares of Sandstorm to Mistango in lieu of the Consideration Shares.
Mistango (formerly GLR Resources Inc.) acquired the Royalty in connection with the sale of the Property in 2009 to Queenston Mining Inc. and Kirkland Lake Gold Inc. Closing of the transaction is expected to occur on September 19, 2013.
Read more: MIS To Sell Kirkland HM Claim Royalty