Shareholders of Producers Group, a private company, will take control of Lake Ponask Gold (TSE), according to a letter of intent signed by the two companies. As part of the deal, $285,540 of Lake Ponask’s debt will be converted into shares at 10 cents per share, all outstanding stock options of Lake Ponask will be cancelled, and the issued shares will be consolidated on a 1-for-4 basis.
The directors and officers of Lake Ponask will be replaced by personnel from Producers Group and Lake Ponask’s name will be changed. The deal is subject to a definitive purchase and sale agreement, due diligence review, regulatory approval, and approval by the shareholders of both companies.
Lake Ponask has a 20% interest in the Hope mine concession in Jamaica. Drilling to date on the property has confirmed low-grade lead and zinc mineralization, with some anomalous gold. The company is currently seeking joint venture partners for its other concessions on the island.
Producers Group is a Toronto- based company providing services in entertainment programming and corporate communications.
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