Business
Corona Gold Corporation agrees to sell its interest in Sugar Zone property
Corona Gold Corporation agrees to sell its interest in Sugar Zone property.
About this update from Crossroads Gold Corp.
[{"type":"text","content":"\n\n\n\n\nTORONTO, June 8 /CNW/ - Corona Gold Corporation (CRG-TSX) and Harte Gold\nCorp. (YHR-TSXV) announce that they have entered into an agreement of purchase\nand sale under which Corona will sell its 51% interest in the Sugar Zone\nproperty to Harte, which currently holds the remaining 49% interest. Upon\ncompletion of the transaction, which is subject to regulatory approval, Harte\nwill have a 100% ownership interest in the property subject to a 3.5% net\nsmelter royalty payable on a portion of the property to third parties.\nUnder the terms of the agreement, Corona will sell its interest in the\nproperty for $5.0 million in cash and warrants to purchase an aggregate of\n2,500,000 common shares of Harte at an exercise price of $0.50 per share. The\nwarrants will expire on the fifth anniversary of the closing date if Harte\nbecomes a Tier 1 issuer on the TSX Venture Exchange or obtains a listing on\nthe Toronto Stock Exchange prior to the second anniversary of the closing\ndate, or otherwise on the latest date permitted by the TSXV. Corona will also\nretain an option to re-acquire at any time an undivided 20% interest in the\nSugar Zone property upon payment of an amount equal to the aggregate of:\n$1.0 million and 20% of all costs incurred in respect of the property by Harte\nfollowing the closing date. In addition Corona has a right of first refusal to\narrange production financing for the project. Closing of the transaction is\ncurrently scheduled for July 7, 2006.\nThe Sugar Zone Property consists of 324 unpatented, contiguous claims\nconsisting of 712 claim units, and covering approximately 11,560 hectares\nlocated 25 km north of White River in the Sault Ste. Marie Mining Division of\nOntario. The claims cover the central portion of the Dayohessarah greenstone\nbelt which trends in a north-south direction and which lies approximately 60\nkm east of the Hemlo gold deposit. As previously disclosed, a technical report\ndated May 17, 2004 prepared by D. Hunt of Sharpstone Geoservices Ltd estimated\nthe Sugar Zone property to contain inferred mineral resources of 954,600\ntonnes grading 9.93g/t Au.\n\nThe Toronto Stock Exchange and the TSX Venture Exchange have in no way\npassed upon the merits of the proposed transaction and have neither\napproved nor disapproved the contents of this press release.\n\n\n\n","length":2389,...