- Golden Share Resources (GSH) has entered into a binding LOI with Midex Resources to sell its Berens River project
- The Berens River project, located in north-western Ontario, includes the past-producing Berens River mine
- Golden Share will sell its whole interest in the project to Midex for a total consideration of C$1.5 million
- Midex will pay the consideration in two tranches of cash, followed by two tranches of its common shares
- Golden Share Resources (GSH) is up 5.26 per cent and is currently trading at 20 cents per share
Golden Share Resources (GSH) has entered into a binding LOI with Midex Resources, to sell its Berens River project.
As a junior natural resource company, Golden Share is focused on mineral exploration in the mineral-rich province of Ontario. Similarly, Midex is also a junior resource company, focused on activities in Ontario.
The companies have signed a letter of intent, under which Golden Share will transfer its whole interest in Berens River to Midex.
The project is located 200 kilometres north of Red Lake, and hosted in north-western Ontario’s Favourable Lake Greenstone Belt.
The Berens River project is host to the past-producing Berens River Mine, which was operated by a Newmont Mining subsidiary from 1939 to 1948.
Midex already owns 100 per cent interest in a 10,000-hectare area surrounding the mine. It also owns 100 per cent interest in 18,000 hectares within the Sturgeon Lake area.
Golden Share will sell the project to Midex for a total consideration of C$1.5 million. Midex will pay the consideration in two tranches of cash, followed by two tranches of its common shares.
The first tranche, consisting of $200,000, has already been received. The second tranche of $300,000 will be paid on or before December 1, 2020.
Tranche three will involve the issuance of two million Midex common shares, at 25 cents per share. These shares will be issued on the first anniversary of the letter of intent between Golden Share and Midex.
The fourth and final tranche will involve the issuance of another 2 million Midex common shares, at 25 cents per share. These will be issued on the second anniversary of the letter of intent.
Golden Share Resources (GSH) is up 5.26 per cent and is trading at 20 cents per share at 11:24am EDT.