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Mining industry

ValGold and Northern Gold Complete Garrison Gold Property Transaction

Strategic Insights

— 1 min read

Northern Gold Mining Inc. has acquired the Garrison Gold Property, a significant gold deposit in northeastern Ontario, from ValGold Resources Ltd. The transaction involves the purchase of a 100% interest in the property, with Northern Gold committing to ensure the continued development of the asset.

Key Takeaways:

  • ValGold Resources Ltd. has sold its 100% interest in the Garrison Gold Property to Northern Gold Mining Inc.
  • Northern Gold acquired the property for an aggregate consideration of an equity stake, with ValGold receiving 16.0 million common shares of Northern Gold.
  • The transaction is valued at approximately 14.7% of the outstanding shares of Northern Gold, a significant increase in ValGold's holdings.
  • Northern Gold will have a 100% interest in the property, allowing for complete flexibility in completing exploration and development.
  • The property is located within the Abitibi greenstone belt, with historic mining infrastructure and producing mines in close proximity.
  • Northern Gold has a right to vote the Northern Gold Shares for a period of 24 months after closing or a change of control, providing significant influence over the company's development.
  • ValGold will maintain a 14.7% stake in Northern Gold, with no plans to increase its beneficial ownership or control of the company's securities.
  • ValGold will use its cash flows to reinvest in existing key properties and pursue new investments to generate greater value for its shareholders.

Statistics:

  • 100% interest in the Garrison Gold Property acquired by Northern Gold Mining Inc.
  • 16.0 million common shares issued to ValGold Resources Ltd. in consideration for the sale.
  • Approximate 14.7% stake in Northern Gold Mining Inc. held by ValGold Resources Ltd. post-closing.
  • TSX Venture approval of the transaction granted on April 14, 2011.
  • $400,000 worth of payments made by Northern Gold, including $200,000 in cash and 2.2 million shares.
  • Over $3,000,000 in exploration expenditures incurred by Northern Gold prior to the closing.

Sources:

  • Northern Gold Mining Inc.
  • ValGold Resources Ltd.
  • TSX Venture Exchange.
  • Marketwire, Inc.

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