Chalice has been issued 3,092,784 common shares and currently holds approximately 9% of the current issued shares of O3 Mining
Chalice Gold Mines Limited (ASX: CHN |TSX: CXN) (“Chalice” or the “Company”) is pleased to announce the successful completion of the previously announced sale of its wholly-owned subsidiary Chalice Gold Mines (Quebec) Inc (“CGMQ”) to O3 Mining Inc (“O3 Mining”, TVX: OIII).
Chalice has been issued 3,092,784 common shares and currently holds approximately 9% of the current issued shares of O3 Mining, which are subject to a statutory trading restriction in Canada for a period of four months from the date of issuance.
In addition, cash consideration will be paid to Chalice by O3 Mining for existing tax credits upon receipt from Canadian tax authorities totalling ~C$1.3 million.
In connection with the transaction, O3 Mining has granted Chalice a net smelter returns (“NSR”) royalty of 1.0% on certain mining claims within the East Cadillac and Kinebik Gold projects which are not encumbered by pre-existing royalties.
Chalice Managing Director, Alex Dorsch, said “the successful completion of this transaction gives Chalice a strong platform for growth, with a working capital and investments balance now totalling approximately A$33 million(~A$0.12 per share). The deal also simplifies our business and allows us to focus on our high-profile exploration opportunities in Victoria and WA.”
Source: Company Press Release