Mr. Peter Smith reports
FANCAMP ACQUIRES A PORTFOLIO OF INTERESTS FROM THE SHERIDAN PLATINUM GROUP LTD.
Fancamp Exploration Ltd. has entered into an agreement with the Sheridan Platinum Group Ltd., pursuant to which it will acquire a portfolio of interests held by Sheridan in the Magpie property, the Lac Lamelee property, the Fermont property, the Longue Pointe de Mingan property, the Desolation Lake property, the Lac au Vent property, the North Shore property and the Villebon property, for a total consideration of $250,000 (payable by way of a promissory note due no later than four months from closing) and 10 million common shares of Fancamp issuable upon closing.
Highlights of the transaction:
-
Fancamp will acquire 57,721,962 common shares in the capital of The
Magpie Mines Inc. and, as a result, will increase its
total holdings in the capital of Magpie Mines from 46.7 per cent to 96.3 per cent of the
issued and outstanding common shares, therefore becoming the controlling
shareholder of Magpie Mines. Fancamp will acquire an additional 1-per-cent net-smelter-return royalty on the Magpie property.
-
Fancamp will acquire an additional 1.5-per-cent net-smelter-return royalty on
the Lamelee property, owned by Lamelee Iron Ore Ltd., a corporation in
which Fancamp is a significant shareholder.
-
Fancamp will acquire an additional 1.5-per-cent net-smelter-return royalty on
the Fermont properties. This royalty will thereafter be transferred to
Champion Iron Mines Ltd., the owner of the Fermont properties, for a
total consideration of $300,000, being $50,000 payable in cash upon
closing and $250,000 payable by way of a promissory note due no later
than four months from closing.
-
Fancamp will increase its position to 100 per cent in the Longue Pointe de
Mingan ferro-titanium property, the Desolation Lake iron property, Lac
au Vent property, the North Shore property and the Villebon property.
Peter H. Smith, Fancamp's president and chief executive officer, said: "Fancamp has, by this single transaction, greatly simplified its structure and added significant value to its portfolio of assets. The company's proprietary Magpie process, a part of the Magpie deposit asset and related to the separation of its complex ores, is of immediate interest because of its income-producing potential. Such licensing arrangements for end-users are a low-risk way forward for the company, and the first of these tests of the process will begin shortly on slag and concentrate samples provided by Pangang/Ansteel, a major Chinese producer."
This transaction is subject to the approval of the TSX Venture Exchange and to the execution and delivery of assignment and assumption agreements in respect of each of the properties.
© 2024 Canjex Publishing Ltd. All rights reserved.