An agreement has been entered into by Timmins Nickel (TSE) and Dumont Nickel (ME) whereby Timmins will spend up to $5 million to acquire a majority interest in, and act as operator of, the Dumont nickel property near Amos, Que.
Timmins will spend $1.5 million on the property and complete a prefeasibility study to earn a 55% interest.
After spending that amount, Timmins will propose a new $3.5-million program in which Dumont may choose to participate. If Dumont decides not to participate, Timmins may fund the work and boost its total interest to 75%. Dumont would retain the right to buy back this additional 20% interest for 200% of expenditures.
President of Timmins and Dumont is Stephen McIntyre.
The Dumont board has agreed to participate in a $150,000 private placement at 20 cents per share, with a half-warrant attached at 23-26 cents per share, subject to regulatory approval.
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