trending Market Intelligence /marketintelligence/en/news-insights/trending/oi_ripmxxzfbfip9ainmvq2 content esgSubNav
In This List

Emgold looks to fully acquire Troilus North property from Chimata

Blog

Insight Weekly: US stock performance; banks' M&A risk; COVID-19 vaccine makers' earnings

Blog

Insight Weekly: LNG exports surge; investors unfazed by inflation; neobanks drive VC funding

Blog

Essential Metals Mining Insights November 2021

Blog

[Infographic]: 2021 World Exploration Trends


Emgold looks to fully acquire Troilus North property from Chimata

Chimata Gold Corp. said May 22 that it signed a letter of intent with Emgold Mining Corp. that grants the latter a right to acquire up to a 100% interest in the Troilus North property in Quebec.

In September 2017, Chimata agreed to acquire the Troilus North property from Greg Exploration Inc. As part of the deal, Emgold will be assigned Chimata's rights and obligations under the agreement with Greg Exploration.

Emgold can acquire an 80% project interest by spending C$750,000 on exploration and issuing 4 million shares within two years of the transaction closing.

The company will have the right to acquire the remaining 20% stake in Troilus North by issuing another 1.0 million shares to Chimata.

Chimata would retain a 1% net smelter royalty over the project, half of which Emgold can repurchase for C$500,000.

If Emgold decides not to exercise the second option, the companies will enter into a joint venture over the project. Emgold will be the initial operator, and each party will be required to contribute to the joint venture entity based on their stake.

If Chimata's interest in the joint venture decreases to less than 10%, the interest will convert into a 1% NSR. Emgold will retain the option to purchase half of the NSR for C$500,000.

The transaction is subject to the parties entering into definitive option and earn-in agreements.