GoldON Enters Agreement to Sell Swayze Gold Project Mining Claims to Trelawney Mining and Exploration
29.09.2016 | FSCwire
Swayze Gold project is located in the District of Sudbury in northeastern Ontario and includes the Chester, Mollie River and Neville-Potier claim blocksVictoria - GoldON Resources Ltd. (“GoldON” or the “Company”) (TSX-V: GLD) is pleased to announce it has entered into a definitive agreement with Trelawney Mining and Exploration Inc. (“Trelawney”) to sell a 100% interest in GoldON’s Swayze Gold project mining claims, which are located in the District of Sudbury in northeastern Ontario and include the Chester, Mollie River and Neville-Potier claim blocks (the “Swayze Claims”).
Under the terms of the agreement, GoldON will receive $300,000 cash, forgiveness of the $125,000 promissory note issued by it to Trelawney, and assignment of Trelawney’s 1,170,544 GoldON shares. In addition, if a storage facility or pond of any nature is constructed on the Swayze Claims for the purpose of storage of tailings derived from Trelawney’s Cote Gold Project, Trelawney will pay to the Company an additional $800,000.
Mike Romanik, president of GoldON, said, “Our participation in the Swayze Gold project has reached its logical conclusion and the Board of Directors and I believe the sale is in the best interest of our shareholders as it frees us up to focus on other projects. We have worked closely with the Trelawney exploration team over the last several years, thank them for their cooperation and diligence, and wish them every success with the Cote Gold Project in the coming years.”
As Trelawney holds more than 10% of GoldON’s outstanding shares, it is considered to be a related party under TSX Venture Exchange Policy 5.9. Trelawney has no representatives on GoldON’s Board of Directors and, upon analysis and discussion of the options available, the Company’s independent Board unanimously determined that the transaction is in the best interests of the Company and that the consideration to be received is fair. TSX Venture Exchange Policy 5.9 requires majority of minority shareholder approval of related party transactions and, therefore, the transaction is conditional on such approval. Management intends to seek approval of the transaction at GoldON’s annual general meeting scheduled for November 8, 2016 and, if such shareholders do approve the proposed transaction, it is expected that the transaction will close shortly thereafter, subject to the receipt by Trelawney and GoldON of deliverables customary for a transaction of this nature.
Assuming completion of the transaction, GoldON’s cash holdings will immediately increase by $300,000, its debt will decrease by $125,000 and the number of its outstanding shares will decrease by 1,170,544 shares, or approximately 11.7%. Following completion, Trelawney will own no GoldON shares.
About GoldON Resources Ltd.
GoldON Resources is an exploration company geographically focused on the prolific mining belts of Ontario, Canada. All of its properties are in good standing and include: the drill-ready Slate Falls gold-silver-VMS property; the Paterson Lake lithium-pegmatite property that adjoins the Separation Rapids lithium project being developed by Avalon Advanced Materials, and the Swayze gold properties adjoining the Cote Gold Project being developed by Trelawney Mining and Exploration, a subsidiary of IAMGOLD. To view GoldON’s latest presentation click here.
For more information contact Michael Romanik.
ON BEHALF OF THE BOARD
Signed “Michael Romanik”
Michael Romanik, President
GoldON Resources Ltd.
Direct line: (204) 724-0613
Email: info@goldonresources.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.