O3 Mining Inc (TSX-V:OIII, OTCQX:OIIIF) has announced a deal to sell its remaining 50% stake in the FCI property in the James Bay region of Quebec, which, the company said, will improve its cash position and support this year's drill program.
The gold explorer said it had entered an asset purchase and sale agreement with Patriot Battery Metals Inc over the divestment, for which O3 will receive 1.8 million Patriot shares, and a one-time cash payment of C$3 million.
"We are pleased to continue to increase value for our shareholders, with no dilution, through divestment of a non-core asset as a part of our ongoing strategy. This transaction will improve our cash position as well as support our 2022 drilling program," said Jose Vizquerra, O3 Mining's CEO in a brief statement.
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Patriot had previously earned a 50% interest in the FCI claims as part of an earn-in and joint venture deal, as amended, between O3 Mining and Patriot.
O3 Mining is an Osisko Group company and is a gold explorer and mine developer on the road to production from its highly prospective gold camps in Québec, Canada.
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