O3 Mining Inc (CVE:OIII) (OTCMKTS:OQMGF) said it has completed the previously-announced sale of the company’s Northern Gold Mining Inc subsidiary to Moneta Porcupine Mines Inc.
In exchange, O3 Mining received 149,507,273 common shares of Moneta Porcupine, which represents approximately 27% of Moneta’s outstanding shares.
O3 Mining noted that it has also entered into an investor rights agreement with Moneta Porcupine Mines, in which Moneta’s board of directors will be reconstituted to consist of eight individuals, with O3 Mining entitled to nominate two directors as well as one newly-appointed independent director that will be agreed upon by both parties.
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In addition, for a period of two years, O3 Mining will have the right to nominate two nominees for election as directors of Moneta and, thereafter, for so long as O3 Mining holds greater than 25% of the issued and outstanding shares of Moneta Porcupine, O3 Mining shall have the right to nominate two individuals for election to Moneta’s board.
The investor rights agreement, which included pre-emptive and top-up rights in favour of O3 Mining, also stipulates that O3 Mining is prohibited from selling any Moneta shares until December 31, 2022.
Northern Gold Mining owns 100% of the Golden Bear assets, including the Garrison gold project in the Kirkland Lake district of Ontario’s Timmins gold mining camp, which is adjacent to Moneta Porcupine’s Golden Highway Project.
By combining assets in the Timmins gold camp, Moneta Porcupine will have an estimated Indicated resource of 4.0 million gold ounces along with 4.4 million Inferred ounces of gold.
O3 Mining said t it acquired the Moneta Porcupine Mines shares for investment purposes and has no current intention of increasing its ownership of, or control or direction over, additional securities of Moneta. It added, however, that it may, from time to time, increase or decrease its ownership of Moneta shares or other securities of Moneta depending on market and other conditions.
O3 Mining is part of the Osisko group of companies and describes itself as an emerging 'consolidator' of exploration properties in prospective gold camps in Canada, specifically in Québec and Ontario. It wants to become a multi-million-ounce company.
In Québec, the group holds 435,000 hectares of ground, while in Ontario it has 25,000 hectares. Overall, the company already has 5.2 million ounces of gold in six existing deposits in its portfolio.
Contact Sean at sean@proactiveinvestors.com