Business
Norsemont Mining to Acquire Choquelimpie Gold/Silver Project
Vancouver, B.C., - TheNewswire - May 20, 2020 - Norsemont Mining Inc. (CSE:NOM), (OTC:NRRSF), FWB: LXZ1) (the "Company") is pleased to announce it has entered i
About this update from Norsemont Mining Inc.
[{"type":"text","content":"Vancouver, B.C., - TheNewswire - May 20, 2020 - Norsemont Mining Inc. (CSE:NOM), (OTC:NRRSF), FWB: LXZ1) (the \"Company\") is pleased to announce it has entered into a letter agreement dated May 19, 2020 (the \"Agreement\") with Tavros Gold Corp., an arm's length private British Columbia corporation (\"Tavros\"), whereby the Company has agreed to acquire all of the issued and outstanding shares of Tavros from the shareholders thereof (the \"Tavros Shareholders\"). Tavros holds the exclusive right to acquire all of the shares of Sociedad Contractual Minera Vilacollo, a private Chilean corporation (\"Vilacollo\") which holds a 100% interest in the Choquelimpie gold/silver project in Northern Chile (the \"Project\"). Inversiones Alxar S.A. (\"Alxar\"), a wholly-owned subsidiary of the Chilean conglomerate Empresas Copec (BCS: COPEC), currently holds all of the issued and outstanding shares of Vilacollo. The transaction constitutes an Acquisition pursuant to Section 3 of Policy 6 of the Policies of the Canadian Securities Exchange (the \"CSE\"). Allan Larmour, CEO of the Company stated, \"We are excited about the opportunity to acquire this well-known and significant gold project in Chile, which had an enormous amount of work previously completed by major mining companies. We are working hard with the deal team towards an expedited closing as we believe this will help to create shareholder value for all our patient stakeholders.\" Terms of the Proposed Transaction The transaction is proposed to be structured as a share exchange pursuant to a definitive share purchase agreement, whereby the Company will acquire all of the shares of Tavros from the Tavros Shareholders in consideration for aggregate cash payments of US$3.3 million (broken down into various property acquisition and other payments payable over 18 months) and the issuance of 15 million common shares in the capital of the Company (each, a \"Share\").. Pursuant to the terms of the Agreement, the Company has agreed to appoint Cesar Lopez to its board of directors as an additional board member resulting in 4 directors of the Company on the Closing Date. No additional changes to the Company's board or management team are anticipated at this time. Mr. Lopez has over 25 years of experience in the natural resources sector, with a strong focus on mining and mineral exploration wit...