Business
Citadel Gold Mines Inc. closes sale of general partnership interest in Citabar Limited Partnership and of restructuring
Citadel Gold Mines Inc. closes sale of general partnership interest in Citabar Limited Partnership and of restructuring.
About this update from Omai Gold Mines Corp.
[{"type":"text","content":"\n\n\n\n\nTORONTO, Aug. 1 /CNW/ - CITADEL GOLD MINES INC. (CGM.H: NEX Exchange).\nFurther to its announcement of June 6, 2006, Citadel Gold Mines Inc. announced\ntoday that it has closed, effective as of July 1, 2006, the transaction\ninvolving the sale by the Company to Dr. Bernard Sherman, a principal\nshareholder and related party of the Company, of the Company's general\npartnership interest in Citabar Limited Partnership and certain claims related\nto the Surluga Property in Wawa, Ontario and the assumption by Dr. Sherman of\ncertain liabilities of Citadel, for aggregate cash consideration of $250,000\n(the \"Transaction\").\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.\nIn conjunction with the Transaction, the Company also announced today\nthat it has completed the restructuring of its preferred share and debt\nstructure.\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 completion of the\nTransaction represents a new beginning for Citadel, which has been relatively\ninactive for the last several years. It is expected that the Transaction and\nthe debt restructuring will put the Company in a position to build a more\nactive and visible company by taking advantages of opportunities for\nexploration and development that exist today in the minerals sector.\n\n\n\n","length":2038,"tagName":"div"}]