- Troilus Gold Corp. (TLG) has signed a definitive agreement to sell a package of 1,824 claims
- This represents an area of approximately 985 square kilometres and will be sold to a subsidiary of Sayona Mining Limited by way of an asset sale
- Troilus shall receive 184,331,797 ordinary shares of Sayona valued at C$40 million
- Concurrently, Sayona has agreed to subscribe, on a non-brokered private placement basis, for 9,883,163 common shares at a price of $0.49 per share for aggregate gross proceeds to Troilus of $4,842,749.87
- Troilus Gold Corp. is a Canadian-based junior mining company
- Troilus Gold Corp. was up 14.286 per cent, trading at $0.56 at 2:43 PM ET
Troilus Gold Corp. (TLG) has signed a definitive agreement to sell a package of 1,824 claims.
This represents an area of approximately 985 square kilometres and will be sold to a subsidiary of Sayona Mining Limited by way of an asset sale.
The transferred claims include land that currently hosts the Tortigny deposit, located adjacent to existing Sayona properties and infrastructure, including its Moblan Project.
As consideration for the sale, Troilus shall receive 184,331,797 ordinary shares of Sayona to be issued at a price of C$0.217 per consideration share, representing a total value of $40 million.
Troilus will be granted a 2-per-cent net smelter returns royalty (NSR) on all mineral products from the transferred claims.
Sayona has agreed to subscribe, on a non-brokered private placement basis, for 9,883,163 common shares at a price of $0.49 per share for aggregate gross proceeds to Troilus of $4,842,749.87.
This increases Sayona’s investment in Troilus to approximately 9.26 per cent.
Upon completion of the private placement, Sayona is expected to hold approximately 9.26 per cent of the issued and outstanding common shares, including the common shares it already owns.
In connection with the private placement, Sayona will be granted certain participation rights to maintain its equity interest so long as it maintains said interest at or above 5 per cent.
The company intends to use the net proceeds of the sale and private placement for working capital and general corporate purposes.
Troilus Gold Corp. is a Canadian-based junior mining company focused on the systematic advancement and de-risking of the former gold and copper Troilus Mine towards production.
Troilus Gold Corp. was up 14.286 per cent, trading at $0.56 at 2:43 PM ET.