Manitou Gold has agreed to sell a 100% interest in its Dryden properties.
The $7 million deal is with Dryden Gold.
The properties include the Kenwest and Gaffney projects.
Manitou receives 4 million common shares of Dryden Gold and retains a 1% net smelter royalty.
Dryden Gold has agreed to spend $1.4-million over three years on exploration activities.
A firm commitment has been made to complete $600,000 of work prior to the first anniversary of the effective date.
Richard Murphy is President and CEO of Manitou and says, “We are excited that Dryden Gold Corp. will be taking the lead in advancing exploration on the Dryden properties. Manitou will become a significant owner of Dryden Gold, who will be pursuing an initial public offer later this year, following which Manitou will retain a large insider ownership position of Dryden Gold. We believe strongly in the potential of the Dryden properties through our large shareholding in Dryden Gold, as well as our retained net smelter royalties on the properties.”
Dryden Gold is a private company, controlled by the founders and management of Ely Gold Royalties, a public company that was sold in 2021 to Gold Royalty for roughly 300 million.
The agreement remains subject to various closing conditions including the completion of a due diligence review by Dryden Gold and the receipt of all applicable approvals of the TSX Venture Exchange.
