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]
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