Klondike GoldCorp. said it has received the initial payment from for thepreviously announced acquisition of the former's portfolio of seven BritishColumbia-based gold and base metal properties.
The acquired properties include , , Ron Gold, Panda Irishman,Cruz-Midway, Thea and Quartz Mountain, totaling 150 claims covering 128 squarekilometers.
According to a July 18 statement, on the first closing, RiseResources made a cash payment totaling C$50,000 and issued 1.5 million sharesand 1.5 million warrants, which can be exercised for 1 share each at a price of22.7 cents for 24 months.
Klondike now owns about 4.56% of Rise's issued andoutstanding share capital.
Upon the one-year anniversary of the first closing, Risewill pay C$150,000 in cash, and issue 2 million shares and 1 million warrants,which expire after 24 months, to complete the acquisition of 100% of theproperties.
Klondike retains a 2.0% net smelter return royalty, in whichRise may purchase half of for C$1.0 million at any time after the first closing.
In May, the companies entered into a property purchase agreement overKlondike's portfolio of Canadian gold and base metal properties.