Mineral exploration company O2Gold has signed a share exchange agreement with Quebec Aur and its shareholders to acquire a gold mining exploration property in Quebec, Canada.
The property comprises 288 mining exploration claims, and the acquisition will be executed through the purchase of all issued and outstanding shares of Quebec Aur.
Under the agreed terms, O2Gold will issue five million of its common shares to Quebec Aur’s shareholders at $0.05 apiece.
This transaction represents an aggregate amount of $250,000.
Quebec Aur’s liabilities are minimal, with the exception of a loan amounting to C$337,369 owed to a third party, which incurs an interest rate of 12% per annum.
The acquisition is not subject to any finder’s fees and hinges on the fulfilment of standard conditions precedent, including the approval of the TSX Venture Exchange (TSXV).
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Additionally, O2Gold launched a non-brokered private placement financing initiative, aiming to raise up to $250,000 by offering up to five million common shares at $0.05 each.
Securities issued in connection with this financing will be subject to a statutory hold period of four months and one day.
The completion of this offering is contingent upon several conditions including TSXV approval.
Net proceeds from the offering are earmarked for financing activities on the acquired assets and for general working capital needs, with an expected closing around 31 May 2024.
Eligible finders may receive finder’s fees as per TSXV policies, which could include a cash commission of up to 7% of the gross proceeds raised and finder warrants equal to up to 7% of the number of common shares sold. Each finder warrant grants the right to purchase one common share at $0.05 for a period of 12 months post-closing.
