NUNAVUT – Elgin Mining of Toronto has entered into a definitive agreement with MMG Resources and Bonito Capital Corp. for the purchase of the former Lupin gold mine on Contwoyto Lake and nearby Ulu gold deposit.
Elgin will acquire Bonito, that has in turn agreed to acquire the gold assets from MMG. MMG will receive $4.8 million in cash and 1.8 million shares of Elgin. Bonito will also replace MMG’s reclamation bonds, estimated to total $27.2 million.
Elgin Mining is the new name for Phoenix Coal, and the company has shifted its focus to gold. Its chairman, Robert Buchan, is the former head of Kinross Gold that at one time owned the Lupin gold mine. (www.ElginMining.com)