79 Resources acquiring Buck Gold
79 Resources Ltd. [SNR-CSE] signed a definitive share purchase agreement with an arm’s-length Calgary-based investor to acquire all of the outstanding common shares of Buck Gold Inc.
Buck Gold is a privately held exploration company headquartered in Vancouver, British Columbia which controls approximately 1,200 km2 (~296,000 acres) of mineral properties located near Houston, British Columbia. The mineral properties controlled by Buck Gold are contiguous to area-holdings of Newmont, Teck and Copper Mountain Mining, and surround Sun Summit Mineral Corp.’s Buck deposit, which has been generating significant market attention through recent drill intercepts.
“The acquisition of Buck Gold is transformative for 79 Resources. We are excited for this generational opportunity to acquire such a sizable and highly prospective land package ideally located in a mining friendly jurisdiction. Helicopter-based geophysical work and ground-based follow-up by Buck Gold has defined a number of immediate high-priority targets adjacent to Sun Summit that 79 Resources will move quickly to further explore once the transaction closes,” said Steven Feldman, CEO of 79 Resources.
“The Nechako Plateau represents one of the most prospective mining investment regions in British Columbia, with development-stage discoveries like Artemis Gold’s Blackwater gold deposit, as well as a new generation of wealth-building discoveries such as Surge Copper’s Ootsa project and of course Sun Summit’s emerging Buck gold deposit. I am looking forward to providing my support to 79 Resources as it advances an impressive exploration model within a tier-one discovery camp for the benefit of shareholders,” stated Ryan Kalt.
To acquire a 100% interest in the securities of Buck Gold, the company will issue 80 million common shares as consideration for all outstanding common shares of Buck Gold now held by Ryan Kalt. The transaction is subject to regulatory approval. The properties held by Buck Gold are subject a 2% gross royalty in favour of Kalt.
The transaction is expected to constitute a Fundamental Change of the company in accordance with the policies of the CSE, and as such is subject to certain CSE filings, shareholder approval, CSE approval and other customary regulatory approvals (as applicable). Completion of the transaction will result in a change of control with Ryan Kalt holding, on a post-closing and direct basis, a total of 80 million common shares to be issued by 79 Resources pursuant to the Transaction. A shareholder meeting to approve the proposed Transaction is expected to be held in August 2021.
Upon closing, the Company has agreed to pay a finder’s fee of 2 million common shares in connection with the Transaction to an arm’s-length party.