Transition Metals Corp. unit Canadian Gold Miner Corp. entered an agreement to secure interest in two exploration stage gold properties from Osisko Mining Inc.
Under the nonbinding letter of intent, Osisko will own about a 19.9% stake in Canadian Gold following the transaction.
Canadian Gold will be required to issue C$400,000 of stock for the DeSantis property and C$100,000 of stock for the Catherine property, for a total issue of 2.5 million common shares.
Osisko will also subscribe for 5.0 million Canadian Gold shares for C$1.0 million, according to the Oct. 12 release.
Osisko can appoint a director to Canadian Gold's board after the transaction, and will hold a first right of refusal on any new royalties to be sold by the latter on the DeSantis or Cote properties, and a first right of offer on any new royalties.