- Mariner Resources (RNR) has signed an agreement with Crest Resources to acquire a 100 per cent stake in the Middle Ridge South Property
- Under the terms of the agreement, Mariner will issue C$240,000 in cash to Crest Resources and other owners of the property, along with 1.8 million common shares
- The vendors will retain a two per cent net smelter return royalty on the property, half of which may be purchased by Mariner at any time for $1 million
- To facilitate the transaction, the company has arranged a non-brokered private placement for a total of up to $600,000
- Mariner Resources (RNR) is currently steady at 17 cents per share
Mariner Resources (RNR) has signed an agreement with Crest Resources to acquire a 100 per cent stake in the Middle Ridge South Property.
Located in central Newfoundland, the property is comprised of 558 mineral claims over a total land package of roughly 139.5 square kilometres. It straddles a 40 kilometre stretch of the Gander River Ultra Mafic Belt, which is thought to play a significant role in the concentration of gold mineralisation in the region.
Under the terms of the agreement, Mariner may wholly acquire the Middle Ridge South Property by issuing to Crest Resources and other owners of the property a total of C$240,000 in cash and 1.8 million common shares within ten days of the closing of a proposed financing arrangement.
A two per cent net smelter return royalty has also been granted to the vendors, half of which may be purchased by Mariner at any time for a one-off fee of $1 million.
The financing, structured as a non-brokered private placement, will see the company issue up to five million common shares at a price of 12 cents for a total amount of $600,000.
A portion of the proceeds will be used to fund the acquisition payment, with the remaining amount to be used for general working capital purposes.
Separately, Mariner Resources has appointed Fred Tejada to its Board of Directors. As a professional geologist, registered in British Columbia, he has more than 35 years of experience in the international mineral industry, with an extensive history at a variety of both major and junior mining and exploration companies.
Fred currently acts as CEO of European Electri Metals, and previously held the position of Vice President of Exploration at Panoro Minerals, where he oversaw resource definition drilling at two of its most significant copper projects in Peru.
Mariner Resources (RNR) is currently steady at 17 cents per share at 11:41am EDT.