GoldON Completes Sale of Swayze Gold Project Mining Claims to Trelawney Mining and Exploration
30.12.2016 | 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 the successful completion of the sale of its Swayze gold project mining claims (the “Swayze Claims”) to Trelawney Mining and Exploration Inc. (“Trelawney”).
Under the terms of the definitive agreement previously announced on September 29, 2016, Trelawney purchased a 100% interest in GoldON’s Swayze Claims for $300,000 in cash, forgiveness of the $125,000 promissory note issued by GoldON 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 GoldON an additional $800,000. All amounts are expressed in Canadian funds.
“I would like to reiterate my thanks to the Trelawney team for being so cooperative through the completion of the Swayze Claims sale,” said Mike Romanik, President of GoldON. “The sale positions GoldON to start the New Year with no debt, under nine million shares issued and a clear focus on our other projects.”
As Trelawney held 11.6% of GoldON’s outstanding shares prior to completion of the sale, it was considered to be a related party under TSX Venture Exchange Policy 5.9. Trelawney had no representatives on GoldON’s Board of Directors and, upon analysis and discussion of the options available, the Company’s independent Board unanimously concluded that the transaction is in the best interests of the Company and that the consideration received is fair. The Company’s disinterested shareholders approved the transaction on November 8, 2016.
Upon completion of the transaction, GoldON’s cash holdings increased by $300,000, its loan decreased by $125,000 to zero and the number of its outstanding shares will, upon cancellation, decrease by 1,170,544 shares, or approximately 11.6%. Trelawney now owns no GoldON shares. The Company was granted relief from the issuer bid requirements of National Instrument 62-104 by the Ontario Securities Commission.
About GoldON Resources Ltd.
GoldON Resources is an exploration company geographically focused on the prolific mining belts of Ontario, Canada. All of its projects are in good standing and include: the drill-ready Slate Falls gold-silver-VMS property; the Rainy Gold project that adjoins New Gold’s Rainy River mine where first production is targeted for mid-2017; the Paterson Lake lithium-pegmatite property that adjoins the Separation Rapids lithium project being developed by Avalon Advanced Materials; and the Pickle Crow claims that are located in the heart of the Pickle Crow gold project owned by First Mining Finance. To view GoldON’s latest presentation visit the Company’s website or click here.
For more information contact Michael Romanik.
ON BEHALF OF THE BOARD
Signed “Michael Romanik”
Michael Romanik, President
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.