O3 Mining Inc (TSX-V:OIII, OTCQX:OIIIF) has announced that it has entered into a definitive share purchase agreement with Cartier Resources Inc. to sell its 100%-owned East Cadillac project located in Val-d'Or, Quebec in exchange for 46,273,265 shares which are equivalent to a 17.5% interest in Cartier.
In connection with the transaction, the companies will enter into an investor rights agreement to entitle O3 Mining to designate one director for appointment to the board of directors of Cartier, the gold explorer and mine developer said.
“The Investor Rights Agreement will also include, among other things, pre-emptive and top-up rights in favour of O3 Mining, a standstill provision for a period of two years and a share transfer restriction provision effective for a period of three years,” it added.
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The transaction remains subject to the satisfaction or waiver of customary closing conditions, including the approval of the TSX Venture Exchange to permit Cartier to issue its common shares to O3 Mining, the company noted.
O3 Mining, an Osisko Group company, is on the road to produce from its 100%-owned prospective gold camps, spanning 137,000 hectares, in Quebec, Canada.
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