Trillium Gold (TSXV:TGM) has announced that it has signed a Definitive Agreement to acquire most of Imagine Lithium’s Eastern Vision properties in the Confederation lake assemblage. This sits within the Birch-Uchi greenstone belt in the Red Lake Mining District of Ontario. The property package now comprises 13,958 hectares between the Fedart, Confederation North, and Confederation South properties.
Trillium Gold has been acquiring and assembling a dominant land package at Confederation Lake, and has created a strategic contiguous land package. This land package is more than 100km of favourable structure on trend with Kinross Gold’s important Dixie Deposit and Evolution Mining’s Red Lake Operation.
Details of the agreement are as follows:
Concurrent with the closing of the Definitive Agreement, Trillium Gold will pay to Pegasus Resources Inc. (“Pegasus”) $20,000 in cash, as well as 100,000 common shares in the capital of Trillium Gold to earn into certain option agreements that Trillium is assuming as options from Imagine Lithium under the Definitive Agreement. The cash consideration represents the remaining option payments under said option agreements, while the equity consideration purchases Pegasus’ carried interest in the relevant properties such that Trillium Gold will be transferred 100% of those properties upon closing of the Definitive Agreement.
Trillium Gold has also entered into a Royalty Purchase Agreement under which it will, concurrently with the closing of the Definitive Agreement, purchase a 2.0% NSR royalty on the Fredart property from prospector Perry English in consideration for the issuance of 60,000 common shares in the capital of Trillium Gold and $50,000 in cash.
The Definitive Agreement and the transactions contemplated thereunder, including purchasing Pegasus’ carried interest in properties covered by certain option agreements and entering into the Royalty Purchase Agreement, remain subject to TSXV approval.
Source:Trillium Gold Mines