Manitou Gold Inc. has struck an agreement with Dryden Gold Corp.
Announced in early March, Sudbury’s Manitou Gold Inc. has entered into an agreement to sell its Dryden gold exploration properties to Dryden Gold Corp., a privately owned company.
Manitou has agreed to sell their Dryden properties, including Kenwest and Gaffney, for $7 million to Dryden Gold.
Manitou will receive 4 million common shares of Dryden Gold and they will retain a 1% net smelter royalty.
Dryden Gold is also expected to fund exploration expenditures totalling over $1.4 million over a three-year period.
In a written statement, President and CEO of Manitou, Richard Murphy said “We are excited that Dryden Gold Corp. will be taking the lead in advancing exploration on the Dryden properties. Manitou will become a significant owner of Dryden Gold, who will be pursuing an initial public offering later this year, following which Manitou will retain a large insider ownership position of Dryden Gold”
“We believe strongly in the potential of the Dryden properties and look forward to our future participation in the exploration upside of these properties through our large shareholding in Dryden Gold, as well as our retained net smelter royalties on the properties.”
The Kenwest project is located within the Boyer Lake Area approximately 35 kilometres south of Dryden.
The Gaffney project is located in the lower Manitou Lake area approximately 60 kilometres south of Dryden.