WTF, now I am confused....Nuinsco to sell Cameron Lake gold project
2009-12-23 08:12 ET - News Release
Mr. Rene Galipeau reports
NUINSCO ANNOUNCES SALE OF CAMERON LAKE GOLD PROPERTY
Nuinsco Resources Ltd. has signed a binding heads of agreement to sell a 100-per-cent interest in its Cameron Lake gold project along with a 700- to 800-tonne-per-day gold mill to Coventry Resources Limited. Under terms of the binding heads of agreement, Nuinsco will receive total consideration valued at approximately $12-million, allocated as follows (all currency amounts in Canadian dollars, unless otherwise indicated):
- $100,000 on execution of the binding heads of agreement (completed);
- $5.9-million in cash, on execution of a definitive sale and purchase agreement (to be completed no later than March 5, 2010);
- Twelve million Coventry shares, representing 17 per cent of the currently outstanding shares of Coventry, (on execution of the agreement). Coventry shares closed on the ASX at 26 Australian cents on Dec. 22);
- A 3-per-cent net smelter return royalty. Coventry will have the right to buy back 2.0 per cent (net) of the royalty at any time within five years from signing the agreement by making a cash payment of $2-million or issuing to Nuinsco $2-million worth of Coventry shares (valued at the 30-day volume-weighted average price for the period immediately preceding the payment date).
"We believe Coventry's management has the desire and capability to move this project to production to the benefit of both companies," said Rene Galipeau, vice-chairman and chief executive officer. "Completion of this transaction crystallizes value for Nuinsco shareholders and will give the company the cash and liquid assets to refocus its expertise in exploration on its projects in Canada, Turkey and potentially in Egypt; to retire outstanding debt; and to continue to participate in the upside of Cameron Lake development and ultimately gold production."
We seek Safe Harbor.