G4G Capital Corp. recently signed a deal with Shawn and his crew to acquire their ground in the White Gold district (excluding ground already dealt to Goldcorp, Kinross and Comstock, and the Lucky Joe property). This still leaves Shawn with many, many claims in other parts of the Yukon. G4G’s shares went from under 20 cents to over 60 cents on the news. And they are raising $3m at 20 cents, which is looking like a great deal for the insiders. There are over 12,000 claims in 20 or so blocks. The Coffee trend claims, previously explored by Ethos might be the the best in the bunch, but there is a lot of good ground including Dime. And a LOT of “other” ground that undoubtedly includes a little bit of moose pasture (especially in the red blocks imho).
The deal seems to be on the steep side, so Cathy must be in charge of negotiations for the Ryan team! Evidently the Ryan name is once again as good as gold:
“In order for G4G to exercise the Option the following consideration will be paid to the Vendors:
- – share consideration of 7 million common shares of G4G (“Common Shares”) issuable in two installments, 1 million within two business days of the Effective Date (as defined below) and 6 million within 18 months of the Effective Date;
- – cash consideration of C$3.5 million payable in five installments, C$500,000 on the Effective Date, C$500,000 on the first anniversary of the Effective Date, C$500,000 on the second anniversary of the Effective Date, C$1 million on the third anniversary of the Effective Date and C$1 million on the fourth anniversary of the Effective Date;
- – and reimbursement of the Vendors’ staking expenses of up to C$40,000.”
There is also a consulting agreement and a 2% NSR attached.
Nice work Shawn!
Oh yeah – those 12,301 claims will require $1.23 million dollars in exploration expenditures each and every year just to retain them all. Let’s hope the junior gold revival is really for real, right guys?
Meanwhile, Shawn is keeping the Newfies on their toes by competing in the Cape Ray staking rush in that province….