For $4.75 million in cash and shares, Montreal-based junior
Situated in Quebec’s Le Sueur Twp., 220 km northeast of Val d’Or, the complex consists of 51 claims and a mining concession that hosts a 500-ton-per-day mill and a licensed tailings pond. Measured and indicated resources are estimated at 523,075 tons grading 0.233 oz. gold per ton; inferred resources, at 595,000 tons grading 0.24 oz. gold.
GeoNova will issue 10 million shares to Ced-Or at 15 per share and take charge of a $3.25-million promissory note bearing annual interest of 6%. Payment will consist of four annual instalments of $750,000 in cash and a final cash instalment of $250,000. The first instalment may also be paid in shares.
The payments can be delayed two years if, over a 6-month period, the mill is not operational on a commercial basis or the price of gold has not exceeded US$300 per oz.
Ced-Or intends to sell its 10 million GeoNova shares, which represent a 25% interest in the company, and focus instead on its growing forestry-products business.
GeoNova’s shareholders will vote on the deal at their annual meeting, which has been rescheduled to Oct. 4.
GeoNova also owns the Discovery gold project, 124 km southwest of Bachelor Lake, and could conceivably truck ore from Discovery to Bachelor Lake’s mill. Resources at Discovery are pegged at 2.3 million tons grading 0.149 oz. gold, including 1.4 million tons at 0.2 oz. gold.
Be the first to comment on "GeoNova eyes Bachelor Lake"