MAS Gold Corp (TSX-V:MAS, OTCQB:MSGCF) announced that it has signed a definitive agreement with Comstock to acquire 100% of its interest in the Preview SW gold project and property in return for 30 million common MAS Gold shares.
The company noted that Comstock's 843-hectare Preview SW property is contiguous with its Preview North property in the La Ronge Gold Belt of northeastern Saskatchewan. The Preview SW property and portions of the Preview North property are located within the Mineral Exploration Zone of Lac La Ronge Provincial Park, it added.
“The Preview SW property is an ideal addition to MAS Gold's current portfolio of Hub and Spoke properties, where the concept that the mineralized material from various satellite deposits (Spokes) could be co-mingled at a centrally located processing facility (Hub),” MAS Gold said in a statement.
READ: MAS Gold and Eros Resources strike option agreement on its La Ronge gold belt property portfolio in Saskatchewan
Upon the closing of the proposed transaction, MAS Gold said Comstock will have the right to appoint one director to its board for a minimum of two years and has already agreed to appoint its CEO, Steven Goldman, as its board representative. Goldman was appointed as president and CEO of Comstock in May 2019 after serving as interim president and CEO since May 15, 2018.
The company said Comstock will also provide additional funding of $200,000, to be expended in the first quarter of 2022 in conjunction with input from MAS Gold, advancing its Preview SW Property before closing of the proposed transaction.
In connection with the signing of the definitive agreement, MAS Gold said it is anticipated that shareholders of Comstock holding an aggregate of at least 51% of the company’s outstanding common shares will enter into voting support agreements with MAS Gold and Comstock under which they will agree to vote their stock in favour of the proposed deal, which is expected to close in the second half of March 2022 after both companies hold their annual general meetings.
Completion of the deal is subject to several conditions, including TSX Venture Exchange acceptance and shareholder approval.
In addition to the Comstock agreement, MAS Gold said a winter 2022 exploration program is planned for the near future that proposes 8,000 meters of core drilling with a focus on the Preview SW Project and its North Lake Gold Deposit and Point Gold Deposit targets.
Additionally, the company said it released the technical report on the 2021 Mineral Resource Updates for North Lake and Greywacke North Gold Projects on SEDAR.
The technical report was issued on January 12, 2022, within 45 days of the December 6, 2021 news release about the Greywacke North Mineral Resource update and covers both the North Lake and Greywacke North Mineral Resource updates.
Vancouver-based MAS Gold is focused on gold exploration projects in the prospective La Ronge Gold Belt of Saskatchewan.
Contact the author at stephen.gunnion@proactiveinvestors.com