Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Klondike Gold (TSXV: KG) and Ximen Mining (TSX.V: XIM) have entered into a property purchase agreement whereby Klondike will sell Ximen all of its gold properties in British Columbia, Canada.
The properties, called Ron Gold (Nelson), Clubine, Hughes, and Quartz Mountain, total 98 mineral claims covering 4,171 hectares and one Crown Granted mineral claim of 8.7 hectares located in the southeastern part of the province.
Klondike expects Ximen to unpack the value of the BC properties for both companies
Under the terms of the agreement, the buyer has to pay $100,000 in cash and make payments of 1m Ximen common shares and 1m Ximen warrants to purchase 1m common shares of Ximen at $0.45 per share for a period of 24 months from the date of issuance.
“Klondike has divested its interests in southeastern British Columbia in return for a meaningful share position in Ximen Mining,” Peter Tallman, the seller’s president and CEO, said in a media statement. “This strategy allows Klondike Gold shareholders leverage to a combined portfolio of highly prospective British Columbia gold properties and [a] permitted gold mill while keeping the company’s financial and exploration focus on its core Yukon assets.”
