Golden Predator cancels Viva Gold acquisition, C2C update
Exploring the Brewery Creek Mine property in the Yukon. Source: Golden Predator Mining Corp.
Golden Predator Mining Corp. [GPY-TSXV; NTGSF-OTCQX] and Viva Gold Corp. [VAU-TSXV, VAUCF-OTCQB] have mutually agreed to terminate an agreement that would have seen Golden Predator acquiring all of the outstanding shares of Viva Gold by way of a plan of arrangement.
However, despite of the decision to terminate the Viva Gold agreement, Golden Predator said it will proceed with a plan to distribute 8.62 million common shares of C2C Gold Corp. [CTOC-CSE] to shareholders of record by way of a return of capital transaction.
C2C Gold is an exploration company with a focus on the acquisition and development of mineral projects in Newfoundland. The company holds the Millertown, Badger and Barren Lake projects located in the Central Newfoundland Gold Belt, where C2C now owns 4,419 claims covering a 100-km-long structural trend.
The company said the acquisition of this ground by staking is part of a strategic initiative to grow C2C into a leading company in Newfoundland’s rapidly emerging gold exploration boom.
The company also holds one of the largest land packages, with several prominent projects, in the prolific White Gold and Klondike districts of the Yukon.
On April 27, 2021, C2C announced details of a non-brokered private placement of 16.4 million units priced at $0.16 per units for gross proceeds of $2.63 million. Each unit consists of one common share and one-half of one share purchase warrant. Each full warrant is exercisable at 20 cents for two years.
The company said financier Eric Sprott agreed to subscribe for 11 million units, leaving him with 14.47% on a non-diluted basis and 19.9% on a partially diluted basis of the company’s stock. The shares were trading Monday at 18.4 cents in a 52-week range of 19 cents and 3.0 cents.
Golden Predator will continue to focus on its Brewery Creek gold mine in the Yukon. The company recently said the Yukon government is allowing it to proceed with the restart of the mine without having to re-enter the permitting process.
According to recent estimates, Brewery Creek contains an indicated oxide resource of 21.14 million tonnes at 1.125 g/t gold or 765,000 ounces. Recent estimates include an additional 8.57 million tonnes of inferred sulphide resources grading 0.985 g/t gold or 270,000 ounces.
Golden Predator shares eased 2.2% or $0.005 to 22 cents. The shares are currently trading in a 52-week range of 48 cents and 16.5 cents.