WESDOME GOLD MINES LTD. AND CANOE MINING VENTURES CORP. CLOSE AGREEMENT FOR PURCHASE AND SALE OF COLDSTREAM AND HAMLIN PROPERTIES
Wesdome closes property buy from Canoe Mining
2016-05-27 17:14 ET - News Release
See News Release (C-WDO) Wesdome Gold Mines Ltd
Mr. Rolly Uloth of Wesdome reports
Wesdome Gold Mines Ltd. and Canoe Mining Ventures Corp. have closed their previously announced agreement whereby Wesdome has purchased from Canoe Mining a 100-per-cent interest in the Coldstream project and the Hamlin-Deaty Creek property, which are near to Wesdome's Moss Lake properties located 100 kilometres due west of Thunder Bay, Ont.
With this acquisition, Wesdome is consolidating its land position in the Shebandowan greenstone belt. The acquired land flanks Wesdome's Moss Lake property and includes the former producing Coldstream mine and East Coldstream gold deposit and their potential untested extensions. This acquisition also eliminates a historically inconvenient property boundary immediately along strike of the three-million-ounce Moss Lake gold deposit. This property boundary area has never been drilled and the acquisition provides the opportunity to conduct further drilling along strike. A 43-101 technical report on the Moss Lake gold deposit dated May 31, 2013, titled "Technical Report and Preliminary Economic Assessment for the Moss Lake project" is available on the company's website.
Rolly Uloth, president and chief executive officer of Wesdome, comments: "Both properties are near our Moss Lake project. The resulting land position represents a dominant strategic asset in the Shebandowon gold belt, including four known deposits which remain open for expansion. These include Moss Lake, Coldstream, Coldstream East and Hamlin properties."
The Shebandowan greenstone belt is part of the Wawa Abitibi subprovince, the world's second-largest historic gold producing terrane. Recent studies have recognized that the many showings and deposits in this area are likely part of an extensive IOCG (iron ore, copper, gold) mineralized system. The Hamlin Cu-Au deposit, which was most recently drilled extensively by Xstrata, is also part of the consolidated land package. The resulting contiguous land position covers approximately 30 kilometres of the Shebandowan greenstone belt.
Management believes it is prudent and advantageous to consolidate a significant land position surrounding its largest gold resource at this time and intends to initiate exploration permitting activities immediately.
Terms of the purchase agreement
Pursuant to the terms and conditions of the purchase agreement, Wesdome acquired the properties from Canoe Mining free from all liens, mortgages, charges, pledges, encumbrances or other burdens with all rights now or thereafter attached thereto (other than with respect to any royalties set forth in the purchase agreement). As consideration for the properties, Wesdome paid or issued (as applicable) to Canoe Mining the following:
(a) With respect to the purchase of the Coldstream portion of the properties:
- An aggregate of $400,000 cash;
- 454,545 fully paid and non-assessable common shares in the capital of Wesdome.
(b) With respect to the purchase of the Hamlin portion of the properties, an aggregate of $100,000 cash.
Duane Parnham, president and CEO of Canoe Mining, comments, "The sale of our projects to Wesdome offers Canoe shareholders equity ownership in a well-managed attractive gold producer having incredible upside potential as they develop the Moss Lake project."
The technical information contained in this news release has been verified by George Mannard, PGeo, who is a qualified person as defined in National Instrument 43-101 Standards of Disclosure for Mineral Properties.