SUDBURY, ON, Nov. 24, 2017 /CNW/ - Canadian Gold Miner Corp. ("CGM" or the "Company") and Transition Metals Corp. (a 40% owner of CGM; XTM – TSX.V, "Transition") are pleased to announce that CGM has today concluded a transaction with Osisko Mining Inc. ("Osisko") to acquire the DeSantis property, a historical gold producer located in the heart of the Timmins Gold Camp, and an option on the Catharine Property, a large exploration land package near CGM's focus area south of Kirkland Lake, Ontario in exchange for 2.5 million common shares of CGM valued at $0.20 per share. Concurrent with the transaction, Osisko also has completed a $1.0 million private placement in CGM consisting 5.0 million units priced at $0.20 with each unit consisting of a common share and a half common share purchase warrant exercisable at $0.35 for a period of two years.
Commenting on the transaction, CGM CEO Greg Collins states "We are pleased to have Osisko's support as a significant shareholder as we look to aggressively advance our portfolio of gold projects in Ontario. In addition to adding two properties with good exploration potential to our portfolio, we view the transaction as a significant milestone that should help us attract additional investment interest and accelerate our ability to create value moving forward."
Osisko now owns approximately 19.9% of the issued and outstanding common shares of CGM with Transition retaining a 39.9% ownership interest. Additionally, Osisko retains rights to: (i) maintain its equity interest in CGM on a pro-rata basis in subsequent financings; (ii) appoint a director to the board of CGM, (iii) a first right of refusal on any additional royalties that CGM may sell on the DeSantis or Cote properties in the future; and (iv) a first right of offer on any royalties that CGM proposes to sell on its existing properties (South Kirkland, West Matachewan, Elephant Head, Jumping Moose and Golden Elk), as long as it retains a 9.9% equity interest in CGM.
About Canadian Gold Miner Corp
Canadian Gold Miner Corp. is a private Canadian corporation focused on exploring for gold in the Larder Lake Mining District near Kirkland Lake. The Company was founded by Transition to leverage its data, expertise and extensive portfolio of high quality gold projects within the district. CGM has now assembled a dominant land position in excess of 215 square kilometres around the Cadillac Larder, Lincoln-Nipissing and Ridout structures in the southwestern part of the prolific Abitibi Greenstone belt in Ontario. The Abitibi Greenstone belt is Canada's most prolific gold district with excellent mining infrastructure in place.
About Transition Metals Corp
Transition Metals Corp. (XTM -TSX.V) is a Canadian-based, multi-commodity project generator that specializes in converting new exploration ideas into Canadian discoveries. The award-winning team of geoscientists has extensive exploration experience in established, emerging and historic mining camps, and actively develops and tests new ideas for discovering mineralization in places that others have not looked, which often allows the company to acquire properties inexpensively. The company has an expanding portfolio that currently includes gold, copper, nickel and platinum projects primarily in Ontario, Nunavut, British Columbia, Saskatchewan and Minnesota that it seeks to advance through funding partnerships and subsidiary companies to maximize shareholder value. With completion of this transaction, Transition's ownership interest in CGM has been reduced to approximately 39.9%.
