The deal provides the seller with financial
flexibility.
Fremont
Gold Ltd. (FRE:TSX.V) announced in a news release it agreed to sell its past-producing Gold
Canyon project to McEwen Mining for 300,000 McEwen common shares. Gold Canyon
is adjacent to McEwen's Gold Bar mine in Nevada. The agreement is expected to
close by Aug. 23, 2019.
"Selling Gold Canyon appreciably increases Fremont's financial
flexibility," CEO Blaine Monaghan said in the release. "It gives us
the ability to generate a significant nondilutive capital infusion, through
the sale of any McEwen shares, which will be helpful as we evaluate
opportunities that can add immediate and long-term shareholder value."
The company noted that it continues its search for a late-stage gold
project in the western U.S. to acquire, one with an economic deposit
containing at least 1 million ounces.
The transaction with McEwen "demonstrates management's ability to
generate and maximize the returns from the present portfolio," Monaghan
noted.
[NLINSERT]
Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and
provides services to Streetwise Reports as an independent contractor. She or
members of her household own securities of the following companies mentioned
in the article: None. She or members of her household are paid by the
following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors
of Streetwise Reports: None. Click here
for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not
of Streetwise Reports or its officers. The information provided above is for
informational purposes only and is not a recommendation to buy or sell any
security.
4) The article does not constitute investment advice. Each reader is
encouraged to consult with his or her individual financial professional and
any action a reader takes as a result of information presented here is his or
her own responsibility. By opening this page, each reader accepts and agrees
to Streetwise Reports' terms of use and full legal disclaimer.
This article is not a solicitation for investment. Streetwise Reports does
not render general or specific investment advice and the information on
Streetwise Reports should not be considered a recommendation to buy or sell
any security. Streetwise Reports does not endorse or recommend the business,
products, services or securities of any company mentioned on Streetwise
Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers,
employees or members of their families, as well as persons interviewed for
articles and interviews on the site, may have a long or short position in
securities mentioned. Directors, officers, employees or members of their
immediate families are prohibited from making purchases and/or sales of those
securities in the open market or otherwise from the time of the interview or
the decision to write an article until three business days after the
publication of the interview or article. The foregoing prohibition does not
apply to articles that in substance only restate previously published company
releases.
