Business
Avidian Gold Closes Sale Of Alaskan Subsidiary To Contango Ore
TORONTO, Aug. 07, 2024 (GLOBE NEWSWIRE) -- Avidian Gold Corp. (“Avidian” or the “Company”) (TSX-V: AVG) is pleased to announce, further to its press release of
About this update from Avidian Gold Corp.
[{"type":"text","content":" TORONTO, Aug. 07, 2024 (GLOBE NEWSWIRE) -- Avidian Gold Corp. (“Avidian” or the “Company”) (TSX-V: AVG) is pleased to announce, further to its press release of May 2, 2024, that it has closed the sale of its 100% owned Alaskan subsidiary, Avidian Gold Alaska Inc. (“Avidian Alaska”) to Contango ORE, Inc. (“Contango”) (NYSE-A: CTGO) for initial consideration of US$2.4 million (CDN$3.3 million) (the “Initial Consideration”), plus potential future upside consideration of US$1.0 million, for total consideration of up to US$3.4 million (CDN$4.7 million at current exchange rate of US$1 = CDN$1.3858) (the “Transaction”). The Initial Consideration is comprised of (i) US$400,000 in cash (the “Cash Consideration”) and (ii) US$2,000,000 in shares of Contango common stock (the (“Equity Consideration”). Avidian Alaska owns and controls the Golden Zone and Amanita NE gold properties and has an option agreement to purchase 100% of the Amanita gold property. Golden Zone is a large, prospective property in between Anchorage and Fairbanks near rail and highway infrastructure. The Amanita and Amanita NE gold properties border Kinross Gold Corporation’s Fort Knox operation near Fairbanks. Dino Titaro, Director and Chairman of Avidian Gold states, “with this transaction now completed the Company will commence shoring up its balance sheet and focus on a value creation strategy for its 100% owned Jungo gold-copper project in Nevada and continue ongoing evaluation of a number of possible strategic opportunities/alternatives that could be transformational for the Company”. The Transaction was put before shareholders and received an overwhelmingly approval of 98.38% of votes casted at the Company’s annual general and special meeting of shareholders held on July 4, 2024. The Transaction constituted a Reviewable Disposition under Policy 5.3 – Acquisitions and Disposition of Non-Cash Assets of the TSX Venture Exchange (the “Exchange”) remains subject to the final approval of the Exchange. Due to a delay from the United States Internal Revenue Service (the “IRS”) of issuing a certificate (the “Certificate”) that Contango is not required to withhold any amount as a result of the Transaction, which Certificate remains unissued, the Company entered into a side letter with Contango and Avidian Alaska pursuant to which the parties agreed to amend the payment sche...