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Mawson Resources closes subscription deal with Nagambie Resources for central Victorian goldfields in Australia

Under the deal, Mawson gets a 10% stake in Nagambie and a right of first refusal to take up or match proposals being considered for a 3,600 square-kilometer tenement package

MAWSON RESOURCES LTD - Mawson Resources Limited closes subscription deal with Nagambie Resources for central Victorian goldfields in Australia
Mawson has also acquired 100% of the Clonbinane project

Mawson Resources Limited (TSX:MAW) (OTCMKTS:MWSNF) announced Thursday that it has closed the strategic and acquisition investment with Nagambie Resources Limited (ASX:NAG), which holds lands in the central Victorian goldfields of Australia.

Mawson has subscribed for 50 million ordinary shares or a 10% stake in Nagambie. The deal provides Mawson with a right of first refusal to take up or match proposals being considered over a competitive 3,600 square-kilometer tenement package.

In addition, Mawson has a pre-emptive right on future issuances of Nagambie shares to avoid dilution.

READ: Mawson Resources posts best gold drill assay of season so far from Rajapalot

Nagambie, in turn, has received 8.5 million common shares of Mawson, which represent approximately 4.7% of the total issued Mawson common shares (after including the one million Mawson acquisition shares from the Clonbinane project acquisition.)

Mawson has acquired 100% of the Clonbinane project. Clonbinane Goldfield Pty Ltd is a 100% subsidiary of Nagambie and holder of 62 sq-km of mineral tenements at Clonbinane.

Mawson paid A$500,002 in cash and one million shares to Nagambie. The company also paid Nagambie A$28,000 to replace environmental bonds. 

Mawson has the right to earn up to a 70% joint-venture interest in each of Nagambie's Redcastle and Doctor's Gully gold properties located in Victoria, Australia by spending A$1 million over a 5-year period into each project.

Contact the author: [email protected]

Follow him on Twitter @PatrickMGraham

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