O3 Mining (TSXV: OIII; US-OTC: OIIIF) is selling its Golden Bear assets, including the Garrison gold project, to Moneta Porcupine Mines (TSX: ME; US-OTC: MPUCF) and taking a 30% stake in the company in a deal worth about $48 million.
O3 Mining’s Garrison project is adjacent to Moneta’s Golden Highway project and the transaction will see the consolidation of over 700 sq. km of ground within a 10-km strike length between the companies’ assets in the Kirkland Lake district of Ontario’s Timmins camp. Once the deal closes, Moneta will have about 8.8 million ounces of gold on its books and one of the largest undeveloped gold projects in North America.
“This has been a very well-thought out process and we have been working together for the last 18 months going back and forth and reviewing all the data and looking at all the synergies we’d have,” Jose Vizquerra, O3 Mining’s president and CEO, said on a conference call. “We have to keep in mind that Moneta is one of the oldest companies listed on the TSX—in 1910 — which brings a good opportunity for consolidating the ground in, I don’t know how many years.”
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