Maudore Minerals Ltd. (MAO.TO), which rose 3% Friday, announced Saturday that it has purchased the Sleeping Giant Mill and an adjacent Tailings Facility from North American Palladium Ltd. (PDL.TO) through its acquisition of all of the outstanding shares of NAP Quebec Mines Ltd. in accordance with a Purchase Agreement entered into on March 22, 2013 between Maudore and NAP. Maudore has also acquired all of NAP's Quebec-based gold assets. A $18 million cash consideration will be funded by borrowings under a $22 million secured credit facility by FBC Holdings Sarl, plus 1.5 million common shares.
The Processing Facility is strategically located 60 km west of Maudore's Osbell Deposit and 150 km north of Val-d'Or, Quebec, along Highway 109, a route which continues north to Matagami, Quebec.
Maudore said: "The consummation of this transaction allows Maudore to further advance its strategy of consolidating its position in a highly prospective yet grossly under-explored region within a globally competitive mining jurisdiction, and provides the company with a degree of optionality as regards the development of its resources. Moreover, in addition to having a strategically important land position of 144,000 ha (1,440 km squared) in the Northern Volcanic Zone of the Abitibi Greenstone Belt of Quebec, Maudore is also inheriting a highly talented workforce capable of developing its resources."
Maudore is a Quebec junior gold company with more than 23 exploration projects, of which five are at an advanced stage of exploration with reported current and historical resource.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
