Business
Corona and Laramide Finalize Thunder Lake Transaction
Corona and Laramide Finalize 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, Sept. 24 /CNW/ - Corona Gold Corporation (CRG-TSX, "Corona") and\nLaramide Resources Ltd. (LAM-TSX, "Laramide") are pleased to announce that\nthey have finalized and signed an agreement pursuant to which Laramide will\npurchase, through its wholly-owned subsidiary, Divine Lake Exploration Corp.\n("NewGoldCo") 100% of Corona's and Teck Cominco Limited's (TCK.B-TSX, "Teck\nCominco") respective interests in the Thunder Lake West, Thunder Lake East and\ncertain adjacent properties in and around Dryden, Ontario (collectively the\n"Properties") as previously announced on April 3, 2007. Closing is expected on\nor about October 1, 2007.\n\n\nUnder the terms of the agreement Corona will receive from Laramide\naggregate cash consideration of $15,000,000 and a 10% interest in NewGoldCo\nafter it becomes a public company. Teck Cominco will receive cash\nconsideration of $3,411,687 and a 2.27% interest in NewGoldCo. Laramide will\nalso transfer to NewGoldCo Laramide's adjacent Goliath property and certain of\nLaramide's other non-uranium assets.\n\n\nThe aggregate consideration for the Properties will be payable as follows:\n\n- A cash payment of $6,137,229 at closing;\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. Laramide's completion\nof this acquisition will form the basis of the intention expressed in the\nLaramide announcement of April 3, 20...