Geologix Explorations Inc. (TSX: T.GIX, Stock Forum) has sold its Silver Cloud property in northern Nevada to Rimrock Gold Corp. (RMRK), a Nevada corporation.
Pursuant to the terms of the purchase agreement, the company has sold all of its interest in 552 unpatented lode mining claims that constitute the Silver Cloud property.
According to the Geologix Explorations press release, Rimrock Gold has agreed to issue 500,000 shares of its common stock to Geologix, of which Geologix is required to assign 100,000 shares to Teck Resources Inc. (TSX: T.TCK.B, Stock Forum)
In addition, if Rimrock Gold delineates more than two million ounces of gold in proven and probable reserves on the mining claims, then Rimrock Gold will issue a further 250,000 shares of common stock to Geologix.
"Following the release of a positive prefeasibility study in March, management at Geologix is squarely focused on the advancement of the Tepal Project in Mexico," said Dunham Craig, Geologix's President and Chief Executive Officer. "The sale of Silver Cloud will further streamline Geologix, and ensure that this promising Nevada project will receive the resources that we believe it deserves."
Geologix is a mineral exploration and development company focused on the acquisition, exploration, and development of mineral resource opportunities that possess the potential to host viable and economic mineral deposits.
On Wednesday, Geologix was trading at $0.09 a share. The company had a market cap of $13.4 million, based on 148.9 million shares outstanding. The 52-week high and low was $0.295 and $0.09 respectively.