Buchans Minerals to create new base metal company
Canadian Buchans Minerals Corp (BMC.V) is selling stakes in three properties near Buchans, N.B., to SG Spirit Gold Inc. (SG.V) as part of its efforts to create a new company concentrating on developing base-metal mining opportunities in Newfoundland and New Brunswick.
In a press release, the company announced that G Spirit Gold will issue $2 million of its stock to Buchans in exchange for Buchans’ namesake property as well as the Tulks North property and a 49% interest in the Tulks Hill joint venture. SG Spirit Gold also will be required to raise $12.5 million through a private placement of stock and to have closed on the Bobby’s Pond property from Mountain Lake Resources (MOA.V).
The transaction will see Bobby’s Pond and other significant base metals assets in the Buchans Area consolidated into one publicly traded company.