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Manitou to acquire RockStar project from Argo Gold in cash, stock deal

Manitou Gold Inc. said March 21 that it agreed to acquire Argo Gold Inc.'s RockStar gold project in Ontario in a cash and stock deal.

The RockStar property comprises 16 unpatented claims across 2,816 hectares within the Goudreau-Lochalsh Deformation Zone.

Manitou is required to pay C$200,000 and issue 4 million shares priced at 12 cents apiece to acquire the project. Argo is also entitled to a 1% net smelter royalty, half of which may be bought back by Manitou for C$500,000.

The property is also subject to a 2% net smelter royalty in favor of a third party, half of which may be repurchased for C$1 million.

Argo previously signed a letter of intent to sell to the property to an arm's length party for C$700,000.