Although still subject to due diligence and regulatory approval, Teck (TSE) has agreed to provide $8.8 million in equity financing for the exploration and development of Lysander Gold’s (VSE) Passagem gold mine in Brazil.
Should Teck elect to proceed, it would subscribe for 2.1 million units of Lysander at a price of 60 cents per unit. Each unit will consist of one common share, one A warrant and one B warrant.
The arrangement assures Teck the right of first offer on all future Lysander financings, provides for representation on Lysander’s board, and establishes a voting trust between Teck’s management and that of Lysander.
The major will also acquire certain back-in rights with respect to the Passagem mine and Lysander’s interest in the Lorraine copper-gold property in central British Columbia.
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