Northfield signs deal to acquire gold mine

Toronto-based Northfield Minerals (ASE) has signed a definitive agreement to purchase control of the Cheminis gold mine property near Larder Lake, Ont., where recommissioning of the shaft, surface and underground facilities began in March. Northfield says it will pay nearly $2 million to acquire a 68.5% interest in the Cheminis property from GSR Acquisitions, a private holding company. Closing of the transaction is scheduled for April 23, and will result in Northfield and its affiliate, Rockford Minerals (TSE), together owning 100% on the Cheminis project.

The purchase price, payable to GSR by Northfield, will be satisfied in part by the latter company assuming responsibility for a $1.88- million payment toward a lien registered against the Cheminis property by Dynatec Mining.

Dynatec has agreed to accept 4,189,999 common shares of Northfield in full satisfaction of the balance of its lien, and will end up with a total of 5.3 million shares, representing about 30% of Northfield’s outstanding shares.

A development and exploration program, employing about 40 workers, is expected to start this month on the Cheminis property, according to Northfield.


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