Toronto-based Bachelor Lake Gold Mines (TSE) has completed the purchase of 750,000 escrowed common shares of Western Premium Resources (VSE), the company said recently.
After securing a 100% interest in the Flordin gold property in Quebec, Bachelor Lake is raising $2 million through Western Premium for exploration at the project.
When the acquisition was completed — which represents 42% of Western Premium’s outstanding shares — David Allen and Western Premium’s other directors were replaced by Bachelor Lake nominees.
Immediately following the closing, Bachelor Lake completed the sale to Western Premium of all the outstanding shares of Bachelor Lake subsidiary Northwest Gold Mines for $5.3 million. In return, Bachelor Lake is taking 15.8 million Western Premium treasury shares.
To comply with Vancouver Stock Exchange regulations, 5.4 million shares will be issued immediately, an additional 5.1 million will also be issued on an earn-out formula as exploration and development expenditures are incurred.
The remaining 5.19 million shares will be issued if and when commercial production begins at Flordin.
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