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Lode Gold Signs $3.5 Million Strategic Alliance; Creating One of the Largest Prospective Land Packages in New Brunswick
Toronto, Ontario--(Newsfile Corp. - August 27, 2024) - Lode Gold Resources Inc. (TSXV: LOD) (OTC...
About this update from Lode Gold Resources Inc
[{"type":"text","content":"Lode Gold Signs $3.5 Million Strategic Alliance; Creating One of the Largest Prospective Land Packages in New BrunswickToronto, Ontario--(Newsfile Corp. - August 27, 2024) - Lode Gold Resources Inc. (TSXV: LOD) (OTCQB: SBMIF) (\"Lode Gold \" or the \"Company\") is pleased to announce it has entered into a definitive agreement with Fancamp Exploration Ltd. (\"Fancamp\") which will result in a $3.5 million investment (the \"Investment Agreement\") into the Company, and into the Company's wholly-owned subsidiary, Gold Orogen. As part of the Investment Agreement, the Company will transfer its interests in the McIntyre Brook Property (111 km2) and Fancamp will transfer its interests in the Riley Brook Property (309 km2), both located in New Brunswick, into a 50/50 joint venture between Gold Orogen and Fancamp. As a result of this agreement, Fancamp will become a key shareholder of Lode Gold and a 19.9% shareholder of Gold Orogen.As per the May 15, 2024 news release, the Company has set up a wholly-owned subsidiary consisting of the Canadian exploration assets, Gold Orogen, and intends to conduct a tax efficient spin-out transaction (the \"Spin Out\") and list the shares of Spin Co on a Canadian securities exchange. Upon completion of the Spin Out, Lode Gold shareholders will be entitled to shares of Gold Orogen.The Investment Agreement and the transactions contemplated thereby are subject to TSX Venture Exchange (the \"Exchange\") acceptance. Key Highlights:The Investment Agreement forms the basis for the creation of one of the largest mineral claims holdings in New Brunswick, with mineral rights spanning 420 km2 across a highly prospective belt that has seen many exciting discoveries: Dalradian, New Found Gold and Calibre Mining, among others.Gold Orogen (the \"Spin Co\") will have strategic interests in four key exploration assets in two emerging orogenic gold camps in North America: Yukon and New Brunswick.Fancamp will become an additional strategic investor of Lode Gold, and a 19.9% shareholder of Gold Orogen.Subject to approval, Lode Gold shareholders will receive shares of Gold Orogen, on a tax efficient basis, in addition to retaining shares of Lode Gold which will retain the Fremont property in California (NI 43-101 Resource - Indicated: 1.16 MOz at 1.90 g/t Au within 19.0 MT ; Inferred: 2.02 MOz at 2.22 g/t Au within 28.3 MT...