By Robb M. Stewart
Troilus Gold has struck a deal to sell its Mike Lake properties in Canada’s Yukon Territory, streamlining its portfolio as it moves to focus entirely on the development of the Troilus Gold project in Quebec.
The exploration company said it will sell its Mike Lake claims to Prospector Metals in exchange for a 19.9% stake in the TSX Venture Exchange-listed company, as Prospector issues to it about 8.6 million shares.
When the deal closes, Prospector Metals plans to immediately begin exploration at Mike Lake, to follow-up on initial exploration work carries out from the mid-1970s to 2008.
The deal also will include a one-time milestone payment in cash or Prospector Metals shares equal to 1 million Canadian dollars ($750,600) if Prospector’s market capitalization is C$20 million or less or equal to C$2 million if it is greater than C$20 million if Prospector announces a mineral resource for the property.
Write to Robb M. Stewart at robb.stewart@wsj.com
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