First Mining FinanceCorp. said May 3 that it signed a definitive share purchase agreementto acquire Chalice Gold Mines Ltd.'sCameron Gold Operations Ltd.unit, which owns the Camerongold project in Ontario, Canada, in a deal valued at C$13 million.
First Mining will issue 32,260,836 common shares to Chalice andgrant it a 1% net smelter royalty on certain mining claims within the project thatare not subject to existing royalties. Chalice will hold approximately 8.1% of FirstMining's capital following the deal.
First Mining can buy back half of the net smelter royalty forC$1 million. Meanwhile, Chalice has agreed to restrict share sell-offs for eightmonths beyond the statutory 4-month hold period.
First Mining Chairman Keith Neumeyer said the deal enhances thecompany's position in Ontario and increases its global measured and indicated in-situgold resources to over 6.8 million ounces and its total inferred in-situ gold resourcesto over 3.5 million ounces.
Completion of the transaction is expected in the second halfof June.
The Cameron project consists of a total of 154 unpatented claims,24 patented claims, seven mining licenses of occupation and four mining leases fora total land package of 31,673 hectares.