49 North Resources Inc. (TSX: V.FNR, Stock Forum) said that Allstar Energy Ltd., a 100% owned subsidiary of 49 North, has executed a definitive agreement to sell its Kindersley Viking assets for cash consideration totaling $24 million.
The Kindersley Viking assets are made up of 840 acres of land in Kindersley, Saskatchewan.
According to the 49 North Resources press release, proceeds from the disposition will be used to payout working interest holders, eliminate the indebtedness under Allstar's outstanding credit facility and to provide drilling capital for Allstar's Riverside and Red Pheasant properties.
49 North is a Saskatchewan focused resource investment company with strategic operations in financial, managerial and geological advisory services and merchant banking
On Tuesday, 49 North’s stock was up 11% and was trading at $2.09 a share. The company has a market cap of $31.6 million, based on 15.1 million shares outstanding. The 52-week high and low was $3.43 and $1.45 respectively.