Transition Metals and its subsidiary Canadian Gold Miner (CGM) concluded a transaction with Osisko Mining to acquire a historic gold producing property in the Timmins camp.
The Sudbury junior miner picked up the DeSantis property and secured an option on the Catharine Property, a large exploration land package south of Kirkland Lake in exchange for 2.5 million common shares of CGM valued at $0.20 per share.
The DeSantis Mine produced 35,800 ounces of gold, grading 6.2 grams per tonne, over a sporadic production history.
It’s located 11 kilometres west of Goldcorp’s Dome Mine.
At the same time, Osisko completed a $1 million private placement in CGM.
"We are pleased to have Osisko's support as a significant shareholder as we look to aggressively advance our portfolio of gold projects in Ontario,” said Greg Collins, CEO of Canadian Gold Miner in a Nov. 24 news release.
“In addition to adding two properties with good exploration potential to our portfolio, we view the transaction as a significant milestone that should help us attract additional investment interest and accelerate our ability to create value moving forward."
Osisko now owns 19.9 per cent of the issued and outstanding common shares of CGM while Transition retains a 39.9 per cent stake.
Privately-held Canadian Gold Miner was created by Transition to focus on the Larder Lake Mining District near Kirkland Lake.
It’s assembled a land package of more than 215 square kilometres in the Abitibi greenstone belt in northeastern Ontario, considered one of Canada’s most prolific gold districts.