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Wolfden Resources Acquires Pickett Mountain Deposit in Maine, USA; Announces Royalty and Equity Financing with Altius Minerals
THUNDER BAY, ON, Sept. 7, 2017 /CNW/ - Wolfden Resources Corporation (WLF:TSX-V) ("Wolfden" or the "Company") is pleased to announce that has entered into a pur
About this update from Wolfden Resources Corp.
[{"type":"text","content":"THUNDER BAY, ON, Sept. 7, 2017 /CNW/ - Wolfden Resources Corporation (WLF:TSX-V) (\"Wolfden\" or the \"Company\") is pleased to announce that has entered into a purchase and sale agreement dated September 6, 2017 (the \"Purchase Agreement\") with an arm's length third party to acquire a 100% interest in property located in Pickett Mountain, Penobscot County, northern Maine, U.S.A (the \"Property\") for a cash purchase price of US$8.5 million (the \"Acquisition\"). The Property is host to the Pickett Mountain Zn-Pb-Cu-Ag deposit, considered by Wolfden management to be one of the highest-grade undeveloped volcanogenic massive sulphide deposits (VMS) in North America (the \"Pickett Mountain Project\"). The deposit was discovered by Getty Mines Ltd. in 1979, using a combination of soil surveys ground surveys and diamond drilling and has not been explored since 1989. The Company has also agreed to the terms of a proposed royalty and equity based financing (the \"Financing Proposal) with a subsidiary of Altius Minerals Corporation (\"Altius\") (ALS:TSX) to fund the Acquisition. The Financing Proposal remains subject to Altius due diligence and customary approvals, whereby Altius would subscribe and purchase from the Company on a non-brokered private placement basis, 14,200,000 subscription receipts of the Company (the \"Subscription Receipts\"), at a price of C$0.25 per Subscription Receipt, for aggregate gross proceeds of C$3,550,000 (the \"Private Placement\"). Wolfden will have the right to place additional participants in the Private Placement, on identical terms, for up to C$1,250,000. Altius will also acquire a 1.35% gross sales royalty on the Pickett Mountain Project for cash consideration of US$6,000,000 and have an option to purchase an additional 0.50% gross sales royalty at any time before the first anniversary of commercial production for US$7,500,000. The Pickett Mountain Project and New Mining Laws in Maine In June 2017, LD 820 was enacted by the Maine legislature, permitting mining of metallic minerals in Maine in certain prescribed situations. The new legislation will take effect on November 1, 2017. Prior to the introduction of proposed new legislation in 2013 and the enactment of LD 820 into law in 2017, there was little mining and mineral exploration in Maine. Interest in the geology and potential fo...