New Found Gold to Acquire Altius’ Sail Pond Project, Newfoundland
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Altius Minerals Corporation has executed a letter of intent to sell its Sail Pond silver-copper-lead-zinc project on the Northern Peninsula of Newfoundland to New Found Gold Corp. (NFG), a private Newfoundland-focused precious metals explorer.
“We are very pleased to be partnering with NFG and its affiliated companies, Palisade Global Investments Ltd. and ThreeD Capital, given the strong combination of technical and capital markets experience that they bring to this discovery. NFG is emerging as a dominant player in precious metals exploration in Newfoundland,” said Chad Wells, VP business development of Altius.
“Our team has spent the last three years building strategic, district scale land packages with the goal of creating the go-to exploration company in Newfoundland. This transformative deal with Altius provides affirmation for our efforts and, with the addition of Sail Pond Property to our portfolio, solidifies our position as a leader in Newfoundland. We would like to welcome Altius as a future key shareholder and we look forward to working together with their team to explore the region,” said Collin Kettell, CEO of New Found Gold Corp.
As consideration for the sale of the Sail Pond Property, upon closing of the transaction, Altius will receive 12 million common shares of NFG and will retain a 2 percent NSR royalty over the project. Other key conditions of the LOI include NFG listing its common shares on a recognized Canadian stock exchange and raising a minimum of $7.5 million via a private placement, of which Altius would invest a minimum of $1 million.
A minimum exploration commitment of $1 million must be completed by NFG within 12 months of closing of the transaction, including an unconditional non-refundable exploration commitment of $250,000 to be spent on or before October 31, 2018. Altius will be the operator of the work program on the Sail Pond Property in 2018. The parties anticipate the closing of the transaction to occur on or about September 30, 2018.
The 739 claims (18,475 Ha) Sail Pond Property comprises newly discovered occurrences of silver-copper-lead-zinc sulphide mineralization of possible epigenetic sediment-hosted style. Extensive, high-grade silver associated with copper, lead, and zinc mineralization is hosted within orogenic, shear-related quartz-calcite veins in altered calcareous sedimentary rocks. The newly discovered occurrences have never been drill tested or surveyed by geophysics.
About Altius
Altius directly and indirectly holds diversified royalties and streams that generate revenue from 15 operating mines. These are located in Canada and Brazil and produce copper, zinc, nickel, cobalt, iron ore, potash and thermal (electrical) and metallurgical coal. The portfolio also includes numerous pre‐development stage royalties covering a wide spectrum of mineral commodities and jurisdictions. In addition, Altius’s Project Generation business holds a large portfolio of exploration stage projects which it has generated for deal making with industry partners that results in newly created royalties and equity and minority interests.
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