Canadian Goldfields to Buy Newton Gold Property in Ontario
Canadian Goldfields (CGM.V) was at last look up by near 5% after agreeing to buy from privately held Newton Gold Corp. its "highly prospective" Newton Gold property, located in Ontario.Under terms agreed, Newton Gold shareholders, immediately prior to the closing of the deal, will receive 12.5-million common shares of Canadian Goldfields, and each Newton Gold shareholder will receive about 0.62 common shares for every one Newton Gold share held, CGM said.The common shares issued to the Newton Gold shareholders will be subject to voluntary restrictions on resale, of which 33.3% will be subject to restrictions on resale for a period of six months following closing, 33.3% will be subject to restrictions on resale for a period of 12 months following closing and 33.4% will be subject to restrictions on resale for a period of 18 months following closing, the company added.The acquisition is subject to the approval of the TSX Venture Exchange acceptance and the satisfaction of other customary conditions, CMG said. The property is subject to a 2% net smelter return royalty, of which 50% can be bought back for $1.5 million, and a 1.5% net smelter return royalty, which can be bought back in its entirety for $500,000, it added.Shares of the company were last seen up $0.02 at $0.435 on the TSX Venture Exchange.Price: $0.48, Change: $+0.06, Percent Change: +14.46%
