Probe Gold (TSX: PRB; OTCQB: PROBF) has completed its acquisition of the Croinor property from Monarch Mining (TSX: GBAR; OTC: GBARF) and X-Ore Resources. The acquisition, which was previously announced on July 12, was made pursuant to an asset purchase agreement between the three companies.
The Croinor gold property is adjacent to Probe’s Megiscane property in Val-d’Or East, Que., and hosts a current high-grade gold resource. According to the company’s press release, the measured and indicated gold resource is 187,900 oz. at 6.47 g/t gold, with an inferred mineral resource of 39,800 oz. at 6.19 g/t.
The acquisition also includes what the company describes as a district-scale, under-explored land package of 152 km2 with significant resource expansion and exploration upside. Probe plans to begin work on the property immediately after closing.
Pursuant to the agreement, Probe acquired a 100% interest in the property for an aggregate consideration of $4.5 million. This includes the issuance of approximately 1.5 million common shares for a total value of $2.5 million based on the 10-day volume weighted average price of Probe’s common shares on the Toronto Stock Exchange ending on July 24. The remaining $2.0 million was paid in cash.
The consideration shares have a hold period of four months and one day from the closing date of the acquisition. In addition, Probe will assume any reclamation liabilities associated with the past-producing Croinor mine.
The acquisition is subject to final approval by the Toronto Stock Exchange.
For more information, visit www.ProbeGold.com.