Sojourn Exploration Inc. agreed to acquire seven properties in British Columbia's Golden Triangle district, under separate deals with Millrock Resources Inc. and privately held Seven Devils Exploration Ltd.
The company expects the two deals and a concurrent private placement to close before the end of August.
Millrock agreed to sell the Oweegee Dome, Willoughby and Todd Creek properties, terminating existing option agreements between the two companies over two of the projects. The new agreement is subject to approval from the TSX Venture Exchange and consent from certain underlying claim owners.
According to an Aug. 9 release, Millrock will retain a royalty on the properties and will be reimbursed for 2017 exploration costs of C$250,000, subject to Sojourn Exploration completing a concurrent financing.
Millrock, which already has 1,800,000 Sojourn Exploration shares, will be issued another 7,823,417 shares to increase its shareholding to 19.9% if C$2.5 million is raised. The shares will be held for 12 months under a voluntary pooling agreement.
Sojourn Exploration also agreed to acquire the Eagle, Teeta Creek, Oxide Peak and Rip properties from Seven Devils Exploration, with consideration comprising 9,623,417 Sojourn Exploration shares and a 2% NSR. The company can repurchase half of the NSR at any time by paying C$1 million.
As part of the deal, the Seven Devils team will take over the company's executive and technical management, with Tyler Ruks taking on the CEO role, Nigel Luckman to serve as COO and Jeff Kyba acting as vice president of exploration.
Concurrent to the two deals, Sojourn Exploration will undertake a nonbrokered private placement to raise up to C$2.8 million, with proceeds going toward early stage exploration on the new properties as well as general administration and working capital.
The offering will comprise up to 28 million units priced at 10 cents apiece, with each unit comprising one share and one warrant, exercisable at 15 cents per share for three years from closing.