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Citadel Gold Mines Inc. announces proposed sale of general partnership interest in Citabar Limited Partnership
Citadel Gold Mines Inc. announces proposed sale of general partnership interest in Citabar Limited Partnership.
About this update from Omai Gold Mines Corp.
[{"type":"text","content":"\n\n\n\n\nTORONTO, May 15 /CNW/ - CITADEL GOLD MINES INC. (CGM.H: NEX Exchange,\nformerly YCI: TSX Venture Exchange) announced today that the Company has\nentered into an agreement of purchase and sale with Dr. Bernard Sherman, a\nprincipal shareholder and related party of the Company, involving the sale to\nDr. Sherman of the Company's general partnership interest in Citabar Limited\nPartnership and certain claims related to the Surluga Property in Wawa,\nOntario and the assumption by Dr. Sherman of certain liabilities of Citadel,\nfor aggregate cash consideration of $250,000 (the \"Transaction\"). Completion\nof the Transaction is subject to certain conditions, including the receipt of\napproval of minority shareholders and all required regulatory approvals. If\napproved by shareholders at the annual and special meeting of shareholders of\nthe Company to be held on June 6, 2006 (the \"Meeting\"), the Transaction will\nresult in Dr. Sherman becoming the sole owner of the Surluga Property. An\nInformation Circular for the Meeting describing the Transaction is being\nmailed to shareholders.\nThe Transaction will provide the Company with immediate funding in the\namount of $250,000 and is expected to provide additional funding on a deferred\nbasis in the amount of up to $270,000, in funds to be received by the Company\nas a reimbursement of funds previously paid by the Company and held by the\nOntario Ministry of Northern Development and Mines Resources in connection\nwith the 1989 closing of mining operations at the Surluga Property.\nSubject to the Company's other obligations, management intends to utilize\nthe proceeds from the completion of the Transaction to launch the Company on a\nnew course by seeking out mineral projects, either at the exploration or\ndevelopment levels, primarily in Canada, but also looking for overseas\nopportunities. Management of the Company believes that the Transaction, if\napproved, will represent a new beginning for Citadel, which has been\nrelatively inactive for the last several years. It is expected that\nTransaction will put the Company in a position to build a more active and\nvisible company by taking advantages of opportunities for exploration and\ndevelopment that exist today in the minerals sector.\nProvided the requisite shareholder approval is obtained, it is expected\nthat the Transact...