McAdam has entered into an agreement with associated company Muscocho Explorations (TSE) whereby McAdam will issue to the latter a $2-million debenture repayable, together with interest at prime plus 2%, over a 44-month period. The deal is subject to regulatory approval.
At Muscocho’s option, the debentures may be converted into common shares of McAdam, the conversion to be based on the trading price of McAdam shares during a specified 20-day training period. Muscocho currently has a 12.61% interest in McAdam.
McAdam hopes to establish a 200-ton-per-day gold mine at Spud Valley. A production decision could be forthcoming in the autumn.
The company says samples received from the sixth level on the Linton North vein at Spud Valley averaged 0.46 oz gold per ton over a 4-ft mining width for the first 49 ft of drifting.
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