Claim Post Resources Inc. sold its gold exploration properties in Timmins, Ontario, for C$350,000 in cash and up to a 2% net smelter royalty, deeming it noncore as it becomes an energy services company.
The company said Dec. 22 it intends to focus on the development of its Tier 1 frac sand deposit in Seymourville, Manitoba.
INFOR Financial Group-backed Central Timmins Exploration Corp. can acquire the royalty for C$1.5 million within two years. The royalty is capped at C$5.0 million.
Claim Post intends to use the proceeds of the sale for general working capital purposes and to partially fund the development of its frac sand project.
As part of the company's transition to energy services, the company's co-founder, Charles Gryba, stepped down as the president and director, effective immediately, and will remain as an independent adviser. He will take up a director role at Central Timmins.
Executive Chairman Lowell Jackson will become interim president.