Redstar Gold ( RGC.V) has entered into an agreement with NV Gold (NVX.V) whereby the latter will acquire all of Redstar’s exploration stage assets in Nevada. NV Gold will be allowed to acquire the projects and the existing database compiled by AngloGold-Ashanti (AU) and the 11 projects after completing its due diligence, by issuing 6 million shares to Redstar Gold.
Redstar will also be allowed to appoint two directors to the board of NVX, which will have to raise C$350,000 in cash within 90 days of closing the acquisition. Should NV Gold be unable to raise the cash, it will have to return the project to Redstar Gold which will subsequently return 5.7 million of the 6 million shares, and keep 300,000 shares as some sort of break fee.
This does confirm Redstar Gold is focusing on Unga and wants to get rid of its non-core properties. Selling the Nevada assets whilst keeping exposure to the potential upside of those assets by retaining 6M shares (which is in excess of 30% of NV Gold’s share count before the mandatory capital raise).
Go to Redstar’s website
The author has a long position in Redstar Gold. Redstar is a sponsor of the website. Please read the disclaimer
