Junior
The Toronto-based company will issue an aggregate of 3.9 million shares, or 25% of its total issued and outstanding shares, to Capital House Canada, in exchange for all the shares in that company’s subsidiary, 1330275 Ontario Ltd. Following closing, Mustang would then consolidate its shares on a 1-for-3 basis.
As part of the agreement, Capital House will nominate two members to Mustang’s 6-member board of directors and become the junior’s financing agent.
The merger, which is still subject to regulatory and shareholder approval, would give Mustang a 100% interest in Tillicum Mountain and $250,000 in cash. The property reportedly hosts possible resources of 726,703 tonnes grading 11.14 grams gold per tonne.
In other news, Mustang recently completed an 8-hole diamond drill program at its East Bull Lake platinum-palladium property, 80 km west of Sudbury, Ont. Results are pending.
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