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O3 Mining Agrees to Sell Garrison Project, Strikes Partnership with Moneta Porcupine to Develop Timmins Gold Camp Position

01/14/2021 | 10:52am
(MT Newswires) -- O3 Mining Inc. (OIII.V) at last look edged up 0.7% after saying Thursday that it has struck a share purchase agreement to sell its subsidiary Northern Gold Mining Inc. to Moneta Porcupine Mines Inc. (ME.TO) in exchange for 149,507,273 Moneta common shares, or 30.1% of Moneta's outstanding shares.

Northern Gold holds 100% of the Golden Bear assets, including the Garrison gold project in the Kirkland Lake district of the Timmins gold mining camp in Ontario. Garrison is located adjacent to the Golden Highway project under Moneta.

Moneta looks to consolidate the Garrison and Golden Highway projects, which is expected to create a "leading gold development company" in the Timmins gold mining camp.

The sale is expected to help O3 Mining focus its resources on advancing its core assets, the Marban and Alpha gold properties in Quebec. At the same time, it will maintain exposure to the development potential of the Garrison project.

The deal includes a partnership between O3 Mining and Moneta under an investor rights agreement and includes the formation of a joint technical committee. O3 Mining will also have the right to nominate two directors for election to Moneta's board and to participate in future financings to maintain its pro-rata ownership position.

In connection with the transaction, Moneta will raise about $20 million in equity, including a $17 million bought deal offering.

Price: 2.92, Change: +0.02, Percent Change: +0.69

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