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Message: Update: Shore Gold Shares Fall 7% After Company Details Acquisition from Newmont to Consolidate Star Orion South Diamond Project and Earn-In with Rio

Update: Shore Gold Shares Fall 7% After Company Details Acquisition from Newmont to Consolidate Star Orion South Diamond Project and Earn-In with Rio

posted on Jun 23, 2017 12:03PM

 

2017-06-23 11:26:36 AM ET (MT Newswires)
   
   

11:26 AM EDT06/23/2017 (MT Newswires) -- Shore Gold Inc. (SGF.TO) -- which touched $0.40 yesterday, compared to a 52 week high of $0.44 - said Friday it has acquired from Newmont Canada FN Holdings ULC all of Newmont's participating interest in the Fort a la Corne joint venture, resulting in Shore owning 100% of the Star Orion South Diamond Project. It has concurrently entered into an Option to Joint Venture Agreement with Rio Tinto Exploration Canada Inc. that will see SGF grant RTEC an option to earn up to a 60% interest in the project on the terms and conditions contained in the Option Agreement.

In connection with the Option Agreement, RTEC has also agreed to subscribe for units of the corporation for an aggregate subscription price of $1 million at a price of $0.18 per unit, with each unit consisting of one common share in the capital of the corporation and one common share purchase warrant, with each warrant entitling RTEC to acquire one additional common share at a price of $0.205 per share for a period of 24 months following the issuance of the units.

Ken MacNeill, Chief Executive Officer of Shore, said, "Rio Tinto is one of the few companies in the world with the resources and expertise to move forward with a project of the magnitude of the Star Orion South Diamond Project."

Shore Gold's shares were recently down 6.9% at $0.340 apiece.

Price: 0.340, Change: -0.025, Percent Change: -6.9

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