O3 Mining Inc (TSX-V:OIII, OTCQX:OIIIF) announced that it has entered into a non-binding letter of intent (LOI) to sell 100% of its East Cadillac project in Quebec to Cartier Resources Inc.
The company said it will receive about 46 million Cartier Resources common shares in exchange for the East Cadillac property, representing approximately 17.5% of the pro forma outstanding Cartier stock upon the completion of the transaction.
“We are pleased to have entered into this agreement with Cartier, which furthers our strategy of deriving value from certain of our exploration assets while retaining exposure to the upside as significant shareholder,” O3 Mining CEO Jose Vizquerra said in a statement.
READ: O3 Mining announces deal to sell FCI property stake, which will improve cash position and support 2022 drilling
“This divestment is part of our go-forward strategy of finding strategic buyers for certain of our assets, who have strong management teams, are well-capitalized and strong technically and operationally,” Vizquerra added.
O3 Mining noted that the transaction remains subject to due diligence, corporate and regulatory approvals, completion of definitive documentation and other closing conditions.
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.
Contact Sean at sean@proactiveinvestors.com