04:01:38 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Pele Mountain Resources Inc
Symbol GEM
Shares Issued 209,396,930
Close 2016-07-04 C$ 0.035
Market Cap C$ 7,328,893
Recent Sedar Documents

Pele Mountain to sell Ardeen to Kesselrun

2016-07-05 09:46 ET - News Release

Mr. Al Shefsky reports

PELE MOUNTAIN TO SELL ITS ARDEEN GOLD PROJECT

Pele Mountain Resources Inc. and Chalice Gold Mines have entered into a purchase agreement whereby their respective operating subsidiaries will sell their respective interests in the Ardeen gold project to Kesselrun Resources Ltd.

Pele president and chief executive officer Al Shefsky stated: "As we focus our efforts on renewable energy, energy storage and rare earth processing projects, we are pleased to monetize our non-core assets to capable explorers and developers, while retaining long-term upside through significant royalty interests. We wish Kesselrun every success in its exploration efforts at Ardeen."

In consideration for the sale, Kesselrun has agreed to issue Chalice and Pele four million common shares of Kesselrun and a package of net smelter return (NSR) royalties. As 49-per-cent owner of Ardeen, Pele will receive 1.96 million shares of Kesselrun and a pro rata share of the royalty package. Following this transaction, Pele will hold approximately 5.5 per cent of the issued and outstanding shares of Kesselrun.

Pele (and Chalice) will be granted certain NSR royalties over certain mining claims. In combination with pre-existing NSRs, the property will be subject to an overall 2.5-per-cent NSR over certain mining claims and a 2-per-cent NSR on the remaining mining claims. The NSRs are subject to certain buyback clauses, which going forward will be for the benefit of Kesselrun.

All securities issued above are subject to a hold period of four months and one day from the date of completion and further provisions restricting the sales of shares to not more than approximately one-10th of the total per month over the following 10 months except where the sale is in a single block to a purchaser acceptable to Kesselrun.

The Ardeen gold project, which Kesselrun has rebranded as the Huronian gold project, is a 5,040-hectare land package in the Shebandowan greenstone belt, approximately 100 kilometres west of Thunder Bay, Ont. The project hosts several significant gold zones including the past-producing Huronian mine (also known as the Ardeen mine), the first producing gold mine in Northern Ontario. The mine area and surrounding mineralized zones are characterized by structurally controlled, high-grade gold and silver hosted in quartz-carbonate vein systems and iron formation.

In 2009, Pele entered into an option agreement with Australian-based Coventry Resources Ltd., pursuant to which Coventry financed sufficient exploration expenditures at Ardeen to earn a 51-per-cent interest in the project. Coventry was subsequently acquired by Chalice. Pele holds its 49-per-cent interest through its wholly owned subsidiary, Pele Gold Corp.

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