Corona secures ground near Nickel Plate mine

In a complex series of transactions, Corona (TSE) has secured ownership of claims it considers strategic to the operation and longevity of its Nickel Plate gold mine near Hedley, B.C. Based on a recent letter of intent agreement with Golden North Resource (TSE), Corona will acquire the Canty claims, about two kilometres northeast of the producing mine. In exchange for the 16 contiguous claims, Corona will cancel the whole of its 1.45 million Golden North shares and pay a 2% net smelter return royalty on all gold recovered in excess of 50,000 oz.

Under the terms of the agreement, Golden North will also transfer to Corona a 100% interest in three additional mineral claims called the Hedley claims. Golden North currently owns 25% of these claims, with the remaining 75% owned by associated company, Hedley Pacific Mining (VSE).

To complete this objective, Golden North intends to purchase Hedley Pacific’s 75% interest in the claims for $45,000 and a 2% net smelter return royalty.

Corona will in turn transfer to Golden North 325,000 shares of Hedley Pacific, representing its entire investment in the company. As a result of this transaction, Golden North’s current equity interest in Hedley Pacific would double to about 35%.

Corona also agreed that its three nominees on the boards of both Golden North and Hedley Pacific would resign. Golden North still holds 116 claims on Nickel Plate Mountain.