MX Gold Corp. signed two binding agreements to sell its remaining mining assets to Cameo Cobalt Corp. for cash, shares and a 50% future net profit interest in the two mining properties.
The company will sell wholly owned unit FortyTwo Metals Inc., which owns the Max molybdenum mine and mill in British Columbia, for C$578,982.76, including C$150,000 cash and 5.0 million common shares and C$53,982 to renew certain mineral claims.
MX Gold will also sell its Willa gold property in British Columbia for C$1 and assigned legacy obligations to the buyer, according to a Jan. 14 statement.
In early October 2018, the company granted an exclusive 90-day option to the then-unnamed arm's-length private British Columbia company to enter into a definitive agreement to sell both assets for C$3 million.
The company is subject to a cease-trade order as it failed to file a technical report on its previously owned Magistral joint venture interest and the MAX property; it is also suspended from trading by the TSX Venture Exchange.
MX Gold said it intends to file an application to revoke the cease-trade order and resume trading after the transaction closes.
The company already has shareholder approval for the sale and for the proposed change of business from a junior natural resource company to a Tier 2 technology issuer.