Bravada Gold (CVE:BVA) is selling its Wind Mountain gold-silver property in Nevada to Mantra Capital for a total of C$5.2 million, the company said, sending shares of the junior explorer up more than 15% on Tuesday.
The consideration will be split into staged payments, with $25,000 already received upon the execution of the definitive agreement, and another $275,000 in cash and $100,000 worth of Mantra shares due by August 1 of this year.
The remaining payments will be made on August 1 of each following year, until 2017. Bravada said that Mantra can satisfy 50% of each payment by issuing its common shares, valued at market prices at the respective date of payment.
"The transaction with Mantra allows Bravada to continue its core business of exploring its remaining inventory of 13 mineral properties in mining-friendly Nevada, together with any newly acquired properties, directly and through option and joint-venture agreements with third-party companies, while benefitting from the sale of Wind Mountain," said president Joe Kizis in a statement announcing the sale.
The company president also said that Mantra would be focused on bringing the Wind Mountain project back into production.
"Our extensive geologic expertise and critically selected land positions in Nevada's most prolific gold trends place Bravada in a strong position to make major new discoveries, which will become critically important as the industry struggles to replace reserves," he concluded.
Bravada explores for Carlin-type and low-sulfidation-type gold holdings within productive trends in Nevada. Homestake Resource (CVE:HSR) owns about 9.8% of the company's oustanding common shares.
Shares climbed 15.4% on Tuesday, to 7.5 Canadian cents in Toronto. Reported by Proactive Investors 9 hours ago.
The consideration will be split into staged payments, with $25,000 already received upon the execution of the definitive agreement, and another $275,000 in cash and $100,000 worth of Mantra shares due by August 1 of this year.
The remaining payments will be made on August 1 of each following year, until 2017. Bravada said that Mantra can satisfy 50% of each payment by issuing its common shares, valued at market prices at the respective date of payment.
"The transaction with Mantra allows Bravada to continue its core business of exploring its remaining inventory of 13 mineral properties in mining-friendly Nevada, together with any newly acquired properties, directly and through option and joint-venture agreements with third-party companies, while benefitting from the sale of Wind Mountain," said president Joe Kizis in a statement announcing the sale.
The company president also said that Mantra would be focused on bringing the Wind Mountain project back into production.
"Our extensive geologic expertise and critically selected land positions in Nevada's most prolific gold trends place Bravada in a strong position to make major new discoveries, which will become critically important as the industry struggles to replace reserves," he concluded.
Bravada explores for Carlin-type and low-sulfidation-type gold holdings within productive trends in Nevada. Homestake Resource (CVE:HSR) owns about 9.8% of the company's oustanding common shares.
Shares climbed 15.4% on Tuesday, to 7.5 Canadian cents in Toronto. Reported by Proactive Investors 9 hours ago.