Subject to regulatory approval, Rea Gold (TSE) has agreed to sell its QR gold property near Quesnel, B.C., to CMP Resources (ME) for $450,000 plus 2.5 million shares of the company currently held by CMP.
Previous estimates put preliminary reserves in three zones on the property at about 1.2 million tonnes grading 5.2 grams gold per tonne. With production at its 30% owned Samatosum mine expected to stop shortly, Rea is now searching for advanced resource projects with the potential for near-term cash flow.
Prior to the completion of the CMP deal, Rea has about 17.8 million shares outstanding, $2.6 million in working capital and no debt.
Closure requirements for the Samatosum, 70% owned by Minnova (TSE), are fully funded through a reclamation bond.
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