Toronto company Victoria Gold Corp. (TSX: V.VIT, Stock Forum) has agreed to sell its interest in the Mill Canyon property in Nevada to Barrick Gold Corp. (TSX: T.ABX, Stock Forum) (NYSE: ABX, Stock Forum) in a deal worth up to US$24 million.
Barrick would pay US$15 million in cash on closing and transfer its interest in the Santa Fe property in Nevada. Victoria Gold would end up with 100 per cent ownership as a result of the transaction, the company said in a press release.
Victoria Gold could also get an additional US$5 million for the Mill Canyon property if Newmont Mining Corp. (NYSE:NEM, Stock Forum) doesn't exercise its right to back into the joint venture.
Trading at 25 cents on Friday, Victoria Gold has a market cap of $84.8 million, based on 339.3 million shares outstanding. The 52-week range is 76 cents and 21 cents.