Matachewan Signs Major Deal for Mineral Royalties Sale
Matachewan Secures New Opportunities Through Royalty Sale
Matachewan Consolidated Mines, Limited (TSX-V:MCM.A-X) is thrilled to share that it has successfully entered into a purchase and sale agreement relating to the important mineral royalties associated with the Young-Davidson Mine. This strategic move allows Matachewan to realize immediate financial benefits and explore new avenues for growth.
Details of the Agreement
Under this agreement, Matachewan has agreed to sell its mineral royalties connected to 24 specific mining claims located in Powell and Cairo Townships, which play an integral role in the overall yield of the Young-Davidson Mine. The purchaser, Alamos Gold Inc., is well-known for its operations in that area, and this transaction bolsters their existing portfolio.
Financial Aspects of the Sale
The total consideration for this sale is set at C$2,700,000, which will be paid in full upon closing. This transaction, which officially concluded recently, is a telling illustration of Matachewan's effective strategic planning in managing its resources and investments.
Growth Potential for Matachewan
This sale not only provides an immediate cash inflow but also opens up new avenues for Matachewan. According to President and CEO Richard McCloskey, this financial uplift will enable the company to pursue various investment opportunities that may yield substantial returns in the future.
Future Investment Strategies
With the proceeds from this transaction, Matachewan is positioned to allocate funds towards more lucrative projects that align with their strategic vision. This approach underscores the commitment of Matachewan to enhance shareholder value while continuing to expand its operational footprint.
Contact Information
For additional inquiries related to this transaction, interested parties are encouraged to reach out to:
Edward G. Dumond
Corporate Secretary
289 231 4765
Matachewan Consolidated Mines, Limited
Frequently Asked Questions
What does the purchase and sale agreement entail?
The agreement involves the sale of mineral royalties connected to the Young-Davidson Mine, providing a cash influx for Matachewan.
Who is the purchaser in this agreement?
Alamos Gold Inc. is the purchaser, known for its operational management of the Young-Davidson Mine.
What are the financial implications of this transaction?
The total consideration for the sale is C$2,700,000, fully satisfying conditions for closing and offering immediate cash benefits to Matachewan.
How will Matachewan utilize the proceeds from this sale?
The company plans to pursue new investment opportunities that promise higher returns and contribute to overall growth.
Who can I contact for more information?
Additional queries can be directed to Edward G. Dumond, Corporate Secretary of Matachewan Consolidated Mines.
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