Buchans Minerals, SG Spirit Gold Forming New Firm Concentrating on Base-Metal Plays in New Brunswick
Buchans Minerals Corp (BMC.V) is selling stakes in three properties near Buchans, N.B., to SG Spirit Gold Inc. (SG.V) as part of efforts to create a new company concentrating on better developing base-metal mining opportunities in New Brunswick.
SG Spirit Gold will issue $2 million of its stock to Buchans in exchange for Buchans' namesake property as well as the Tulks North property and a 49% interest in the Tulks Hill joint venture. SG Spirit Gold also will be required to raise $12.5 million through a private placement of stock and to have closed on the Bobby's Pond property from Mountain Lake Resources (MOA.V).
interest (collectively, the "Property"). The Property is inclusive of the Lundberg deposit, Daniels Pond deposit, and its 49% interest in the Tulks Hill deposit, all of which are located near Buchans, Newfoundland. In exchange for 100% of the Property, SG Spirit Gold will issue the number of common shares representing 50% of the issued and outstanding capital of SG Spirit Gold, warrants and a cash payment of $2.0 million, as more fully described below (the "Transaction"). It is a condition of the Transaction that at closing SG Spirit Gold will have raised $12.5 million pursuant to a Financing (as hereinafter defined)
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