Cross River Ventures Corp. [CRVC-CSE; C6R-FWB] shares rallied strongly in active trading Friday November 6 after the company said it is picking up the rights to eight gold projects in northwest Ontario via the acquisition of privately-owned Northern Dominion Metals Corp.
Cross River said the projects are situated on the highly gold-endowed Archean Superior province of Ontario and include significant land positions in two key greenstone belts known as Lang Lake and Uchi.
The company said the projects represent over 17,000 hectares of highly prospective gold exploration ground in and among established and productive gold belts.
Shares advanced on the news, rising 16.5% or $0.07 to 49.5 cents on volume of 923,145. The shares are currently trading in a 52-week range of 48 cents and 17 cents.
Under the deal announced on Friday, Cross River will acquire all of the outstanding share capital of Northern Dominion Metals. In return, Cross River will issue 2.5 million common (consideration) shares to the vendors. It will also assume all of the private company’s obligations with respect to its existing resource projects.
The consideration shares will be issued on closing and will be subject to an escrow arrangement from which one quarter of the shares will be released 120 days after closing and a further quarter every 90 days thereafter.
Northern Dominion Metals is headed by a proven management and technical team with a track record of significant discovery. The team includes Rob Carpenter, former CEO of Kaminak Gold, a company acquired by formerly-named Goldcorp in a $520 million deal in 2016.
“All the rights to acquire interests in the projects were originally acquired from a company controlled by Perry English, vendor of the Dixie Lake Project to Great Bear Resources Ltd. “This is a significant acquisition for Cross River, one that positions the company for substantial growth,” said Cross River CEO Alex Klenman. “The portfolio is extensive, located in the right areas for meaningful discovery, and contains only projects that have met key exploration criteria established by a well-known team of geologists and people with track records of significant discovery,” he said.
Cross River’s portfolio also includes a 100% option to acquire the Tahsis property on northern Vancouver near Armstrong, Ontario.