- Fancamp Exploration Ltd. (FNC) has agreed to sell all its rights to the Koper Lake-Mcfaulds mineral properties to KWG Resources Inc. (KWG)
- The properties include four mining claims
- The owed amount is made up of a $34.5 million secured convertible promissory note and a to be determined number of warrants
- KWG will also grant Fancamp of a 2.00 per cent net smelter return royalty on the claims
- Fancamp Exploration Ltd. (FNC) is up 4.35 per cent trading at $0.12 per share as of 2:54 p.m. ET
- KWG Resources Inc. (KWG) is unchanged trading at $0.04 per share as of 2:37 p.m. ET
Fancamp Exploration (FNC) has agreed to sell all its rights to the Ontario-based Koper Lake-Mcfaulds mineral properties to KWG Resources Inc. (KWG).
The properties include four mining claims and the owed amount is made up of a $34.5 million secured convertible promissory note and a to be determined number of warrants issued by KWG to Fancamp.
“The proposed consideration package allows Fancamp to monetize its investment into KWG with marketable securities while providing KWG with an immediate cash injection that will permit KWG to advance various initiatives relating to the Mining Claims and to assist with their working capital needs,” Rajesh Sharma, President and CEO of Fancamp, said.
KWG will also grant Fancamp of a 2.00 per cent net smelter return royalty on the claims, one-quarter of which can be purchased by KWG at any time for $5 million and the next one-quarter of which will be subject to a right of first refusal in favour of KWG.
The companies stated the transaction is also subject to a 30 day right of first refusal in favour of Bold Ventures Inc. in connection with a joint venture agreement with Fancamp. The companies expect to close the deal during the third quarter of this year.
“The proposed transaction simplifies some of the existing joint venture arrangements and will enable KWG to be the clear leader in the advancement and development of the Mining Claims and, in due course, to help finance this initiative,” Sharma said.
Fancamp Exploration Ltd. (FNC) is up 4.35 per cent trading at $0.12 per share as of 2:54 p.m. ET.
KWG Resources Inc. (KWG) is unchanged trading at $0.04 per share as of 2:37 p.m. ET.