- Pegasus Resources (TSXV:PEGA) announced that the TSX Venture Exchange has conditionally approved the purchase and sale agreement with Ashley Gold Corp. (CSE:ASHL) for the company’s sale of its non-core Icefield Property in British Columbia.
- Pegasus will receive a total of 8 million common shares of Ashley with 6 million shares upon signing the agreement
- Pegasus will be granted one seat on Ashley’s Board of Directors
- Pegasus Resources stock (TSXV:PEGA) opened trading at $0.06
Pegasus Resources (TSXV:PEGA) announced that the TSX Venture Exchange has conditionally approved the purchase and sale agreement with Ashley Gold Corp. (CSE:ASHL) for the company’s sale of its non-core Icefield Property in British Columbia. In the works since March, the transaction reflects Pegasus’ focus on unlocking value from legacy assets while accelerating development of its U.S.-based uranium portfolio. This transaction underscores Pegasus’ commitment to creating shareholder value by monetizing non-core assets while maintaining a strong focus on advancing its flagship uranium projects in the United States.
Transaction terms summary
- Consideration: Pegasus will receive a total of 8 million common shares of Ashley as follows:
- 6 million shares upon signing the agreement (subject to Ashley satisfying CSE filing requirements, which its initial CSE filings and postings have been completed).
- The shares will be subject to statutory and contractual hold periods as follows:
- 2,000,000 held for 4 months and a day from issuance;
- 2,000,000 held for 8 months from the day of issuance; and
- 2,000,000 held for 12 months from the day of issuance.
- 2,000,000 additional shares are to be issued within 60 days of Ashley receiving drill permits for the Icefield Property.
- Governance and participation rights
- Pegasus will be granted one seat on Ashley’s Board of Directors.
- Pegasus will retain the right to participate in future Ashley financings to maintain a minimum 10 per cent equity stake.
- Royalty transfer
- Ashley will assume all royalty obligations under Pegasus’ original agreements with DG Resource Management Ltd.
“Our agreement with Ashley represents a strategic milestone in realizing value from the Icefield Property while keeping Pegasus shareholders exposed to its upside,” Pegasus’ CEO, Christian Timmins said in a news release. “This aligns with our broader goal of monetizing non-core assets to fund growth in our U.S. uranium portfolio. With gold prices hitting record highs, this transaction offers a timely and potentially lucrative opportunity for Pegasus investors.”
The completion of the transaction remains subject to final approval by the TSXV and other customary closing conditions. The company and Ashley anticipate closing the transaction on April 17, 2025, which would result in the initial issuance of 6 million shares of Ashley to the company.
Pegasus Resources is a Vancouver-based junior mining company focused on uranium, gold and base metals properties.
Pegasus Resources stock (TSXV:PEGA) opened trading at $0.06.
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(Top image via Pegasus Resources.)