Consolidated Woodjam completes Woodjam acquisition - Stockwatch
Woodjam project pursuant to an agreement dated Aug. 11, 2015, with Gold Fields Netherlands Services BV (Gold Fields), as described in a news...
CONSOLIDATED WOODJAM COPPER COMPLETES THE ACQUISITION OF 100% OWNERSHIP OF THE WOODJAM COPPER-GOLD PROJECT
Consolidated Woodjam Copper Corp. has completed the acquisition of a 51-per-cent interest in the Woodjam project pursuant to an agreement dated Aug. 11, 2015, with Gold Fields Netherlands Services BV (Gold Fields), as described in a news release dated Aug. 13, 2015. Under the agreement, the company has purchased all of the shares of Gold Fields Horsefly Exploration Corp. which holds a 51-per-cent interest -- in a joint venture with the company -- in the Woodjam project, which is subdivided into the Woodjam North and Woodjam South projects. As a result, the company now controls 100 per cent of the Woodjam copper-gold-molybdenum projects located near the community of Horsefly, approximately 45 kilometres east of the regional centre of Williams Lake, British Columbia. The agreement has been accepted by the TSX Venture Exchange.
In consideration for the acquisition of Gold Fields Horsefly, the company has issued 12,285,463 common shares to Gold Fields which takes its aggregate holding in the company to 19.19 per cent. The shares of the company held by Gold Fields shall be topped up (to a maximum of 50 million additional shares) on the third anniversary of the agreement, for no additional consideration so that Gold Fields' holding at that time remains equal to 19.9 per cent of the then issued and outstanding shares of the company. The top-up will be adjusted to take into account any shares of the company that have been sold by Gold Fields over that three-year period. Gold Fields also has the option of maintaining its equity interest in the company by participating in future share placements. Gold Fields retained a 2-per-cent net smelter return royalty (NSR) over all unencumbered land in the Woodjam project, which may be reduced at any time to 1 per cent by the company paying Gold Fields $5-million in cash. A 0.5-per-cent NSR will apply to certain encumbered claims, subject to terms and conditions. In addition, the company will pay Gold Fields all past accumulated refundable B.C. mineral exploration tax credits earned in Gold Fields Horsefly, as they are received.
The management and board of the company are pleased and excited to move forward with the Woodjam project under its control and to have Gold Fields as a significant shareholder in the company. The company would also like to acknowledge the exceptional exploration work carried out by Gold Fields on the Woodjam project over the last several years.
Management of the company believes there are significant opportunities for expansion of the resource base laterally, at depth and by infilling known zones. Additionally, there are untested exploration targets ready for potential discovery. The company intends, subject to financing, to aggressively advance further exploration of the Woodjam project.
G. L. Garratt, PGeo, a qualified person for the purposes of National Instrument 43-101, has read and taken responsibility for this news release.
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