Viking Gold agrees to buy two gold properties from Cliffs unit
Tue May 17, 2011 9:00am EDT
May 17 - Canada's Viking Gold Exploration Inc said it agreed to buy two advanced gold properties from Freewest Resources Canada Inc, a wholly owned unit of Cliffs Natural Resources Inc .
Viking Gold will acquire 70 percent interest in a property in the Verneuil township in the Abitibi region of Quebec, and 100 percent of the Larose property in northwestern Ontario.
It will issue 1 million shares from treasury and grant a net smelter royalty of 0.5 percent on both properties to Freewest, in exchange for its interest in these properties, the company said in a statement.
Viking Gold is a mineral exploration company with properties in Canada's northwest territories.
The Viking gold property lies in the Yellowknife Belt of rocks - a prolific gold belt, which has produced over 13 million ounces of gold, according to the company's website.
Viking Gold shares closed at 24 Canadian cents on Monday on the Toronto Venture Exchange.
Shares of Ohio-based miner Cliffs Natural Resources, which is boosting its U.S. exports of iron ore pellets to take advantage of exceptionally high global prices, were trading up at $86.31 before the bell on Tuesday. They closed at $85.95 on Monday on the New York Stock Exchange. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Don Sebastian)
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SIGNIFICANCE:
An $86 per share company, Cliffs Natural Resources, is willing to take shares of a .24 pps company, Viking, on the US Grey Sheets in payment for two gold properties in a proven "gold belt" region.
What is Mac Watson up to this time?
