Trading on TSX (Symbol: CRG)
Shares outstanding: 18,341,701
TORONTO, April 3 /CNW/ - Corona Gold Corporation (CRG-TSX, "Corona") is pleased to announce that it and Teck Cominco Limited ("Teck Cominco") have entered into a letter of intent (the "LOI") to sell their interests in the Thunder Lake West, Thunder Lake East and certain adjacent properties in and around Dryden, Ontario (collectively the "Thunder Lake Properties") to Laramide Resources Ltd. ("Laramide"). Corona's share of the aggregate consideration will be $15,000,000 and a 10% interest in a new public company ("Newco") to be formed by Laramide to hold the Thunder Lake Properties, Laramide's adjacent Goliath property and Laramide's other non-uranium assets. Teck Cominco will receive consideration proportionate to its 18.53% interest in the Thunder Lake Properties.
In exchange for its interests in the Thunder Lake Properties, Corona would receive aggregate cash payments of $5,000,000 on each of the closing date of the sale, 60 days after the closing date and 120 days after the closing date. Corona would also receive 10% of the common shares of Newco issued and outstanding on completion of the transaction pursuant to which Newco becomes a public company. If such transaction is not completed by December 31, 2007, Corona and Teck Cominco will have the option of requiring Laramide to issue to them common shares of Laramide with a market value, based on the weighted average trading price of the common shares of Laramide for the 20 trading days prior to December 31, 2007, equivalent to the initial cash payment.
Closing of the transactions contemplated by the LOI is subject to certain conditions including, without limitation, execution of a definitive agreement of purchase and sale, receipt of all necessary regulatory and third party approvals and completion of due diligence satisfactory to Laramide with respect to the Thunder Lake Properties. Laramide has 30 days from the date of the LOI to complete such due diligence.
Corona's proposed sale of its interest in the Thunder Lake Properties and its continuing investment in Newco, as well as the proposed sale of its interest in the Sugar Zone property to Harte Gold Corp. (HRT - TSXV) are consistent with Corona's stated intention to maximize the value of its existing properties and to explore new resource-based exploration and investment initiatives.
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