Cloudbreak Discovery PLC (LSE:CDL) said 1315843 BC Ltd (BCCo), its exploration partner at the Atlin West project in British Columbia, is to be bought by Canadian group Power Group Projects Corp.
The deal will see Power Group Projects (PGP) assume all obligations of BCCo's option agreement with Cloudbreak. The AIM-quoted firm agreed to amend some terms of the agreement to assist in the completion of the acquisition.
Subsequently, PGP can buy 75% of the Atlin West project over a three year period by issuing 3mln shares to Cloudbreak, pay C$325,000 in cash and spend US$700,000 on exploration.
"We are pleased to see the management of 1315843 BC Ltd entering into this agreement with Power Group Projects,” said Cloudbreak chief executive Kyler Hardy.
“Having the resulting issuer listed on the TSX-V will greatly aid in securing additional capital for the advancement of the projects and we believe the management of PGP will be exceptional partners to have on this asset."