08:21 AM EST, 01/24/2017 (MT Newswires) -- GoldON Resources Ltd. (GLD.V) entered Tuesday into a definitive agreement to sell its Pickle Lake mining claims to First Mining Finance Corp. (FF.V). Separtely, FF said Tuesday it had commenced in-fill and resource expansion drilling at the Goldlund Project and announced the acquisition of claims in Ontario and Quebec.

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Pursuant to the asset purchase agreement, GoldON has agreed to sell a 100% interest in its five unpatented mining claims located near Pickle Lake, Ontario in exchange for 200,000 shares of First Mining. The deemed value of the transaction is approximately $168,000 and was based on the 5-day volume weighted average price of First Mining's shares. The First Mining shares will be subject to a statutory resale restriction in Canada for a four-month period from completion of the transaction. The transaction is subject to the receipt of applicable regulatory approvals by First Mining and the satisfaction of certain other closing conditions customary in transactions of this nature. GoldON and First Mining expect to complete the transaction by January 31st.

"The sale of our Pickle Lake claims further strengthens First Mining's land position in the Pickle lake Camp and enables us to monetize a non-core asset," said Mike Romanik, President of GoldON. "We are focused on our two other gold exploration projects: the recently acquired Rainy Gold claims adjoining New Gold's Rainy River project, where they are targeting first production mid-year; and the Slate Falls property, where we recently received a 3-year extension of our exploration permit and look forward to working with the local First Nations groups to facilitate drilling of the high-grade targets to test our new exploration model."

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