Mawson Resources Limited (TSE:MAW)(OTCMKTS:MWSNF) announced Tuesday that it has entered into a subscription agreement with Nagambie Resources Limited (ASX:NAG), which holds tenements in the central Victorian goldfields of Australia.
In a statement, Mawson said it has subscribed for 50 million ordinary shares, or 10%, of Nagambie. As a result, Mawson has become a new insider of Nagambie, pursuant to Australian Stock Exchange policies.
Nagambie, in turn, has received 8.5 million common shares, or 4.7%, of Mawson shares, which are subject to a statutory four-month hold period and voluntary trading restrictions to be released from such restriction in four equal tranches.
Mawson has also secured a right of first refusal to take up or match proposals being considered over a competitive 3,600 square kilometre tenement package held by Nagambie.
This package includes the Nagambie Gold Mine and provides Mawson with a pipeline of potential new projects. In addition, Mawson has a pre-emptive right on future issuances of Nagambie shares to avoid dilution.
In addition, Mawson said it has entered into an acquisition agreement with Nagambie pursuant to which Mawson has acquired 100% of the shares in Clonbinane Goldfield Pty Ltd, a 100% subsidiary of Nagambie and holder of 62 sq-km of mineral tenements at Clonbinane. Mawson will pay A$500,000 in cash and 1 million shares to Nagambie.
Furthermore, Mawson said it has the right to earn an up to 70% joint-venture interest in each of Nagambie's Redcastle and Doctor's Gully gold properties located in Victoria, Australia by incurring the following exploration expenditures:
- A$100,000 in the first year and an additional A$150,000 in year two to earn 25%
- An additional A$250,000 in year three to earn 50% and an additional A$500,000 by year five to earn 70%
- Once Mawson earns 70%, a joint venture between the parties will be formed
Update on Finnish activities, coronavirus
In other news, Mawson said the 2020 winter drill program in Finland is now complete for 14,142 meters. Strong news flow is anticipated to continue over the coming months with only 13 holes reported to date from a total of 37 holes drilled.
The program concluded approximately 850 meters earlier than planned due to Mawson's commitment to providing a safe work environment during the global response to the coronavirus (COVID-19) pandemic.
“Staff are now working from home, or via shifts at the company's Rovaniemi core facility where appropriate physical distancing can take place,” the company said.
Contact the author: [email protected]
Follow him on Twitter @PatrickMGraham