Khalkos Exploration Inc. said Oct. 11 that it entered into agreements to acquire the Courville gold project in Quebec.
The transaction covers 390 claims and various exploration projects, which will be secured via the acquisition of their holders, Abitibi Norex Corp. and Pershimex Inc. The mining rights represent nearly all of the assets of Norex and Pershimex.
Under the terms, Khalkos is required to issue around 39,975,000 shares at 10 cents apiece for around C$4 million.
In addition to Khalkos assuming existing net smelter royalties on the Courville project mining rights, some additional royalties in respect of certain mining rights will be allocated for a maximum total of 2.50% per mining right.
Khalkos intends to develop the Courville project and undertake a drill program by the end of the year.
The transaction will boost Khalkos' share capital to 99,525,731, an increase of 40.17%.
Following deal closing, Khalkos' management will propose a change of name to Pershimex Resources Corp.