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Friday, 1 February 2013
Cadillac Ventures sells New Alger property in cash and share deal
Cadillac Ventures (CVE:CDC) has agreed to sell its New Alger property in Cadillac Township, Quebec to Renforth Resources in a cash and share deal.
Under the terms of the agreement, Cadillac will get $20,000 in cash and 2.0 million common shares of Renforth at the time of signing, as well as another $210,000 in cash by June 15 of this year, and $250,000 in cash by November 15, 2013.
Cadillac will also retain a 1% net smelter return royalty on the property. No other details on the transaction were provided in the statement on Tuesday.
The company has recently turned its focus to the former Burnt Hill tungsten mine in New Brunswick – a property on which the company expects to restart development for little cost.
Late in November, the Toronto-based company announced that it resumed exploration on the property, which covers more than 125 square kilometres and has NI 43-101 compliant tungsten, tin and molybdenum resources.
Historical work on the mine dates back to the early part of last century, but new showings have since been discovered, in particular for tin, which will be tested this year.
Cadillac’s CEO, Norman Brewster, has been himself involved with the mine since the 1970s, when he was hired as a consultant by then-owner – Canadian International Paper – to assess whether the mine could be put back into production economically.
After some ownership changes, Cadillac Ventures now holds a 51 per cent interest in the Burnt Hill project, with Noront Resourcesholding the remainder. Brewster did some twinning of historical holes on the property, as well as some other diamond drilling to pull together the latest NI 43-101 resource estimate from 2009.
The phase 1 ground exploration program at the property will target the Tin Hill, Burnt Hill Brook Area, the Burnt Hill Mine Area, and the 2 1/2 Mile Brook Area, with two prospecting crews currently in the field.
Cadillac has just raised $1.2 million under a recent financing to fund exploration, and plans to raise more funds this year.
Burnt Hill currently holds 461,000 tonnes of total NI 43-101 compliant underground and open pit resources in the indicated category, grading 0.489% tungsten and 0.01% tin. The inferred category holds a total of 590,000 tonnes, grading 0.535% tungsten and 0.013% tin.
Cadillac also stands to benefit from its nickel and copper Thierry project in northwestern Ontario, which consists of the past producing Thierry Mine and hosts two NI 43-101 compliant resources at the Thierry Mine and the K1-1 deposit.