Business
Corona to Sell Thunder Lake Properties to Laramide for $15 million and Shares of New Company
Corona to Sell Thunder Lake Properties to Laramide for $15 million and Shares of New Company.
About this update from Crossroads Gold Corp.
[{"type":"text","content":"\n\n\n\nTrading on TSX (Symbol: CRG)\n\n\nShares outstanding: 18,341,701\n\n\nTORONTO, April 3 /CNW/ - Corona Gold Corporation (CRG-TSX, "Corona") is\npleased to announce that it and Teck Cominco Limited ("Teck Cominco") have\nentered into a letter of intent (the "LOI") to sell their interests in the\nThunder Lake West, Thunder Lake East and certain adjacent properties in and\naround Dryden, Ontario (collectively the "Thunder Lake Properties") to\nLaramide Resources Ltd. ("Laramide"). Corona's share of the aggregate\nconsideration will be $15,000,000 and a 10% interest in a new public company\n("Newco") to be formed by Laramide to hold the Thunder Lake Properties,\nLaramide's adjacent Goliath property and Laramide's other non-uranium assets.\nTeck Cominco will receive consideration proportionate to its 18.53% interest\nin the Thunder Lake Properties.\n\n\nIn exchange for its interests in the Thunder Lake Properties, Corona\nwould receive aggregate cash payments of $5,000,000 on each of the closing\ndate of the sale, 60 days after the closing date and 120 days after the\nclosing date. Corona would also receive 10% of the common shares of Newco\nissued and outstanding on completion of the transaction pursuant to which\nNewco becomes a public company. If such transaction is not completed by\nDecember 31, 2007, Corona and Teck Cominco will have the option of requiring\nLaramide to issue to them common shares of Laramide with a market value, based\non the weighted average trading price of the common shares of Laramide for the\n20 trading days prior to December 31, 2007, equivalent to the initial cash\npayment.\n\n\nClosing of the transactions contemplated by the LOI is subject to certain\nconditions including, without limitation, execution of a definitive agreement\nof purchase and sale, receipt of all necessary regulatory and third party\napprovals and completion of due diligence satisfactory to Laramide with\nrespect to the Thunder Lake Properties. Laramide has 30 days from the date of\nthe LOI to complete such due diligence.\n\n\nCorona's proposed sale of its interest in the Thunder Lake Properties and\nits continuing investment in Newco, as well as the proposed sale of its\ninterest in the Sugar Zone property to Harte Gold Corp. (HRT - TSXV) are\nconsistent with Corona's...