- Crest Resources (CRES) has signed an agreement to sell its True Grit and Middle Ridge North gold properties in Newfoundland to Mariner Resources
- Under the terms of the agreement, Mariner will wholly acquire the properties via the issuance of seven million common shares
- Crest Resources currently owns 2.78 million of Mariner’s common shares, representing 20.9 per cent of the outstanding amount, but this is expected to increase to 42.38 per cent following completion of the transaction
- Previous drilling work at the True Grit property returned 117 metres at 0.6 grams per tonne of gold
- Crest Resources (CRES) is currently up 2.78 per cent and is trading at C$0.18 per share
Crest Resources (CRES) has signed an agreement to sell its True Grit and Middle Ridge North properties in Newfoundland and Labrador to Mariner Resources.
Under the terms of the agreement, Mariner will wholly acquire the properties via the issuance of seven million common shares.
Crest Resources owns an 85 per cent stake in both the True Grit and Middle Ridge North properties, with five per cent owned by Volatus Capital and the remaining 10 per cent held by Nicholas Rodway, an officer of Crest Resources.
These vendors will retain a two per cent net smelter return royalty on the properties, half of which may be acquired by Mariner at any time for a fee of C$1 million.
Crest Resources currently owns 2.78 million common shares in Mariner, representing 20.9 per cent of the total issued and outstanding amount.
The company will receive a further 5.82 million common shares as part of the transaction, bringing its total holding to 8.6 million shares, or 42.38 per cent of the total issued amount.
Michael Collins, President and CEO of Crest Resources, said the company has worked hard to develop a strong package of projects in Newfoundland’s Exploits zone.
“Mariner is a Newfoundland-focused company with an exceptional management team with a history of exploration successes.
“We believe that Mariner will be very successful in exploring and developing the Middle Ridge and True Grit Gold Projects,” he added.
The Middle Ridge North and True Grit properties cover a total land package of 409.5 square kilometres in the southernmost and northernmost regions of the Gander River Ultramafic Belt line offset, which form the eastern structure of the Exploits Subzone.
Previous diamond drilling at the True Grit property returned promising results, including 117 metres at 0.6 grams per tonne of gold, along with channel samples of 15.6 grams per tonne of gold over one metre and grab samples of 30.2 grams per tonne of gold.
Crest Resources (CRES) is up 2.78 per cent and is trading at C$0.18 per share at 11:36am EDT.