Chalice wraps up sale of Cameron Gold Project to First Mining Corp

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Image credit: chalicegold.com

Australian-based mining company Chalice Gold Mine has completed the sale of its wholly-owned subsidiary Cameron Gold Operations – which owns the Cameron Gold Project – to First Mining Corp for 32,260,836 common First Mining shares.

Image credit: chalicegold.com
Image credit: chalicegold.com

The transaction means that Chalice now holds approximately 8.1% of the current issued shares of First Mining.

Chalice said that First Mining shares are subject to a statutory resale restriction in Canada for a four-month period from completion, as noted in the company’s announcement on 4 May 2016.

“In addition, Chalice has agreed to further provisions, restricting the sales of shares to not more than approximately one eight of the total number of shares per month over the following eight months except where the sale is in a single block to a purchase acceptable to First Mining,” Chalice said in a statement to the ASX.

As part of the transaction, First Mining has granted to Chalice a net smelter returns (NSR) royalty of 1% on certain mining claims within the Cameron Gold project which are not encumbered by pre-existing royalties.

According to Chalice Managing Director Tom Goyder, First Mining retains the right to repurchase 0.5% of the NSR royalty for CDN$1,000,000.

“The successful completion of this sale places Chalice in an enviable position with cash and investments of approximately A$62 million (22 cents per share), at current market values, providing a tremendous platform from which to grow the Company and take advantage of new opportunities as they arise,” Mr Goyder concluded.

The Cameron Gold project is an advanced resource project located in the highly mineralised southern part of western Ontario in Canada. The project has a number of attractive attributes, including high gold recoveries by conventional metallurgy, and a large-sized gold project.