Business
Corona and Laramide Close Thunder Lake Transaction
Corona and Laramide Close Thunder Lake Transaction.
About this update from Crossroads Gold Corp.
[{"type":"text","content":"\n\n\n\nCorona Gold Corporation - CRG on the TSX\n\n\nLaramide Resources Ltd. - LAM on the TSX\n\n\nTORONTO, Oct. 4 /CNW/ - Further to their press release of September 24,\n2007, Corona Gold Corporation (CRG-TSX, "Corona") and Laramide Resources Ltd.\n(LAM-TSX, "Laramide") are pleased to announce that they have closed the\ntransaction pursuant to which Laramide has purchased, through its wholly-owned\nsubsidiary, Divine Lake Exploration Corp. ("NewGoldCo") 100% of Corona's and\nTeck Cominco Limited's (TCK.B-TSX, "Teck Cominco") respective interests in the\nThunder Lake West, Thunder Lake East and certain adjacent properties in and\naround Dryden, Ontario (collectively the "Properties") under the terms\npreviously announced.\n\n\nOn closing Corona received from Laramide cash consideration of\napproximately $5,000,000. Under the terms of the agreement Corona will further\nreceive from Laramide aggregate cash consideration of $10,000,000 and a 10%\ninterest in NewGoldCo after it becomes a public company. Teck Cominco received\ncash consideration of approximately $1,137,299 at closing and will further\nreceive aggregate cash consideration of $2,274,598 and a 2.27% interest in\nNewGoldCo. Laramide will also transfer to NewGoldCo Laramide's adjacent\nGoliath property and certain of Laramide's other non-uranium assets.\n\n\nThe balance of consideration for the Properties will be payable as\nfollows:\n\n- A cash payment of $6,137,229, 60 days after the closing date;\n- A cash payment of $6,137,229, 120 days after the closing date; and\n- 12.27% of the common shares of NewGoldCo issued and outstanding on\n completion of a transaction pursuant to which NewGoldCo becomes a\n public company. If such a transaction is not completed by March 31,\n 2008, Corona and Teck Cominco have the option of requiring Laramide\n to issue to Corona and Teck Cominco common shares of Laramide with a\n market value of $6,135,000 ($5,000,000 to Corona and $1,135,000 to\n Teck Cominco) in-lieu of their respective interests in NewGoldCo.\n\n\nCorona's sale of its interest in the Thunder Lake Properties and its\ncontinuing investment in NewGoldCo are consistent with Corona's stated\nintention to maximize the value of its existing properties and to explore new\nresource-based exploration and investment initiatives. ...