Anyone bottom-fish NOX-V you're a happy camper. Message 29633731
NioGold Mining (NOX-V July 25, '14 is pleased to announce that it has entered into a letter of intent with Osisko Gold Royalties pursuant to which Osisko will acquire, by way of private placement, 14 million flow-through common shares of NioGold at a price of $0.35 per share. In addition, Osisko will acquire, for an aggregate purchase price $150,000, NioGold's rights to repurchase a portion of the royalties on certain of NioGold's claims. Details of the transaction are as follows:
Private placement
Osisko will acquire 14 million flow-through common shares of NioGold for total proceeds of $4.9 million to NioGold.
Osisko has indicated that, upon closing of this acquisition, Osisko will own 23,598,500 common shares of NioGold, or approximately 19.5% of NioGold’s then issued and outstanding common shares. Osisko has further indicated that it will acquire these 14 million flow-through common shares of NioGold for investment purposes and, other than these shares, Osisko has no current intention to increase the beneficial ownership of, or control or direction over, additional securities of NioGold.
Purchase of Right to Repurchase Marban and Malartic Hygrade-NSM Royalties
Osisko will acquire, for $150,000, NioGold's rights to repurchase a portion of the existing royalties on the Marban block and Malartic Hygrade-NSM block, consisting of:
The right to repurchase for the price of $1,000,000: 0.25% NSR on the Marban claims 0.5% NSR on the First Canadian claims 1.0% NSR on the Norlartic claims The right to repurchase for the price of $1,000,000: - 1.0% NSR on the Malartic Hygrade-NSM claims
The definitive agreement for the transaction will also include the following key terms:
NioGold will relocate its head office to Montréal, Québec NioGold's board will be reconstituted to include two Osisko nominees, two NioGold nominees and one nominee to be jointly determined by Osisko and NioGold, for a total of five directors. The transaction is subject to customary conditions, including the satisfactory completion of Osisko’s due diligence on NioGold’s assets, the negotiation and entering into by both parties of a definitive agreement and the receipt of regulatory approval from the TSX Venture Exchange. The common shares of NioGold issuable under the transaction will be subject to a 4 month hold period from the date of issue.
NioGold Mining Corporation – « On Canada’s Golden Highway »
NioGold Mining Corporation is a mineral exploration company focused on gold. The Company’s flagship projects are located in the Cadillac - Malartic - Val-d’Or region of the prolific Abitibi gold mining district, Quebec. The Cadillac, Malartic and Val-d’Or mining camps have produced over 45 million ounces of gold since the 1930’s and presently encompasses six producing gold mines including Osisko Mining’s new Canadian Malartic operations. NioGold’s land holdings within the Abitibi presently cover 130km2 and encompass four former gold producers, namely the Norlartic, Kierens (First Canadian), Marban and Malartic Hygrade mines that collectively produced 640,000 ounces of gold.
NioGold’s experienced and qualified technical team are overseeing the advancement of these projects, targeting expansion of the resource base.
NioGold invites you to visit the company website at www.niogold.com.
For information on NioGold Mining Corporation contact:
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