Canada-based gold exploration company O3 Mining has reached a definitive share purchase agreement with Moneta Porcupine Mines under which it has agreed to sell its wholly-owned subsidiary, Northern Gold Mining, in exchange for 149,507,273 common shares of Moneta.
Northern Gold owns 100% of the Golden Bear assets situated in the Abitibi Greenstone Belt (AGB), including the Garrison gold project, which is located adjacent to the Golden Highway Project where Moneta recently declared a mineral resource estimate of 2,144,200 ounces of indicated mineral resources and 3,335,300 ounces of inferred mineral resources.
José Vizquerra, President and CEO of O3 Mining, said the divestiture was part of the company’s broader corporate strategy to unlock value for its shareholders and maintain exposure to the development potential of the Garrison Project while allowing the Corporation to focus its resources on advancing its core assets – the Marban and Alpha gold properties situated in Québec, Canada.
“O3 Mining is pleased to unlock value for our shareholders through our investment in, and ongoing support of, our new partner, Moneta,” Mr Vizquerra said.
“This transaction will allow O3 Mining to partner in the future development of a large and long-life gold project situated in one of the world’s most famous gold producing districts through the consolidation of these two projects and their respective land positions.
“We look forward to partnering with Moneta’s management team, through our board representation and in our role as Moneta’s largest shareholder, and being part of its growth story.
“O3 Mining aims to be a supportive partner to Moneta as it advances the Garrison and Golden Highway Projects through the formation of a joint technical committee, board representation, and its ability to participate in future financings to maintain its pro-rata ownership position.”
Moneta CEO Gary O’Connor, said the strategic consolidation of the Garrison and Golden Highway Projects under Moneta will create a leading gold development company in the prolific Timmins gold mining camp, allowing for their more systematic exploration and combined development in partnership with O3 Mining.
“The partnership with O3 Mining through the acquisition of the Golden Bear assets will transform Moneta into one of the largest gold development companies in North America with a significant resource and landholding in Canada’s most prolific gold mining camp,” he continued.
“The Golden Bear assets, including the Garrison Gold deposits, are adjacent to our flagship Golden Highway project and provide significant synergies and multiple options for the development of our gold deposits.
“We are excited about this transaction; it provides excellent value for the shareholders of both companies.”