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by Stockwatch Business Reporter
The TSX Venture Exchange fell 4.84 points to 538.71 Wednesday. James Hutton's first capital pool shell,
Owl Capital Corp. (OCC: halted), has submitted a filing statement for its qualifying transaction, which is a U.S. gold mining deal. The shell has received conditional approval from the TSX-V for the deal. Owl Capital is acquiring the following: a 75-per-cent interest in the Oro Cruz property in California, an 85-per-cent interest in the Eastgate property in Nevada and a 5.58-per-cent equity interest in Bullfrog Gold Corp. (BFG: $0.14). To acquire these three targets, the shell will issue shares to two vendors. Specifically, the shell, which has 6,237,063 shares issued, will issue 14,302,940 shares to Ron Netolitzky's Eros Resources Corp. (ERC: $0.06) and 11,124,000 shares to Dale Wallster's Demerara Gold Corp.
Oro Cruz covers 2,783 hectares in Southern California, near Arizona. It includes a past-producing gold mine, which yielded more than 150,000 ounces between 1890 and 1941. Then from 1995 to 1996, MK Gold Co. produced 61,000 ounces before ceasing operations. It blamed the mothballing on the price of gold, which at the time was under $400 (U.S.) an ounce. Now, with the price of gold at $1,475 (U.S.) an ounce, the mine could make for a promotable asset. On closing of the QT, Owl Capital's resulting issuer will own 75 per cent of Oro Cruz. The other owner is Paul Saxton's Lincoln Gold Mining Inc. (LMG: $0.085), which will continue to hold a 24-per-cent interest. Lincoln is focusing its efforts not on Oro Cruz but on its Pine Grove property in Nevada.
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