trending Market Intelligence /marketintelligence/en/news-insights/trending/qwn2p6kw1vlx5ejzfb9fdq2 content esgSubNav
In This List

GTA closer to exiting mining with tentative CBLT deal

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


GTA closer to exiting mining with tentative CBLT deal

GTA Resources & Mining Inc. said Oct. 19 that it signed a letter of intent to sell all of its mining assets to Toronto-listed CBLT Inc. for 35 million CBLT treasury shares, worth about C$1.1 million.

If it closes the asset sale, GTA plans to distribute all CLBT shares to its own shareholders as a dividend.

Earlier in October, GTA entered into an agreement for a C$425,000 loan from an arm's-length party, to be secured through a yearlong debenture in two tranches. The sale is part of GTA's plan to exit the mining sector, and it plans to acquire assets in another industry in which the lender may have a foothold.

GTA will use the loan proceeds to carry out the next phase of exploration at the Big Duck Lake gold project in Ontario and make it a more attractive asset for sale and to satisfy outstanding government incentive obligations.

The two parties are also in talks for GTA to divest all of its mining assets and acquire assets in an industry in which the lender already has an interest. If GTA reaches such an agreement, it may consider several options including a change of business, a reverse takeover or a share consolidation.