Date: Feb 14, 2019
Vancouver-based Regency Gold (NEX: RAU.H) announced it has entered into a definitive agreement with Vanadium North Resources to acquire all of its issued and outstanding common shares, the main interest behind the buyout being the Valley of Vanadium project in the Northwest Territories.
In a press release, the companies said that Vanadium North holds an option to acquire 100% of the Valley of Vanadium, and the project, combined with surrounding claims that have been staked by Vanadium North, comprises its sole asset.
Once Regency’s acquisition is completed, it will own 100% of Vanadium North in consideration for the issuance to Vanadium North shareholders of an aggregate of 13,995,985 common shares of its capital. Regency also has to issue 7,500,000 common shares to Strategic Metals, a company that owns part of the claims.
Strategic Metals will retain a 2% net smelter return royalty on any commercial production from the property, one-half of which may be purchased for a payment of $1 million before commercial production begins.
“On completion of the acquisition, the business of the company will be the business of Vanadium North, and it will be a mineral issuer engaged in the vanadium exploration space,” the media statement reads.
