Business
Fancamp Exploration Announces Closing of Transaction with Platinex to Develop Ontario Gold Assets
VANCOUVER, British Columbia, March 14, 2023 (GLOBE NEWSWIRE) -- Fancamp Exploration Ltd. (“Fancamp” or the “Corporation”) (TSX Venture Exchange: FNC) is pleased
About this update from Fancamp Exploration Ltd.
[{"type":"text","content":" VANCOUVER, British Columbia, March 14, 2023 (GLOBE NEWSWIRE) -- Fancamp Exploration Ltd. (“Fancamp” or the “Corporation”) (TSX Venture Exchange: FNC) is pleased to announce that it has closed the Transaction (as defined below) with Platinex Inc. (\"Platinex\") (CSE: PTX), as previously announced (see news release dated February 6, 2023). As part of the Transaction, the Corporation transferred its Hennan Mallard and Dorothy properties and Platinex’s transferred its Shining Tree property to South Timmins Mining Inc. (\"Goldco\"), a subsidiary of Platinex. Pursuant to the Transaction, Fancamp holds a 25% interest in the share capital of Goldco, while Platinex holds a 75% interest in the share capital of Goldco. Fancamp has an option to increase its shareholding to 50% pursuant to the terms provided in the Shareholders’ Agreement (as defined below) entered into by the parties (the “Transaction\"). As part of the Transaction: (i) the Corporation and Platinex entered into a shareholders' agreement (the “Shareholders’ Agreement”) providing for the governance of Goldco’s operation; and (ii) the Corporation purchased 25,869,741 shares of Platinex at a price of $0.04 per share representing 9.5% of the issued and outstanding shares of Platinex. In addition to its 25% interest in the share capital of Goldco, as part of the Transaction, Fancamp was granted a 1.0% net smelter return royalty (the \"NSR Royalty\") in respect of the Hennan Mallard and Dorothy properties, subject to a decrease to a 0.5% NSR Royalty should Fancamp elect to exercise an option to acquire 50% of the issued and outstanding shares of Goldco, in accordance with the provisions of a royalty agreement entered into between the parties. As part of the Transaction, Fancamp contributed $130,000 to Goldco in respect of the right and option to earn into the Shining Tree Gold Project in the Abitibi region of Ontario to be used to advance the initial exploration program. The Transaction has received conditional approval from the TSX Venture Exchange (the “TSXV”), but remains subject to final approval of the TSXV. The Transaction was a non-arm’s length transaction as Fancamp and Platinex are Non-Arm's Length Parties (as defined in Policy 1.1 of the TSXV) of one another by virtue of Greg Ferron being an independent director of Fancamp and the Chief Executive Officer and a director ...