As well as, MAG has agreed to supply Gatling with a bridge mortgage of as much as C$3 million to finance the corporate’s accounts payable and working bills. The mortgage is convertible into 19.9% of Gatling’s issued and excellent shares.
Shares in Gatling shot up 37% following information of its acquisition by MAG, giving the Ontario-focused gold explorer a market capitalization of C$16.8 million.
Gatling’s prized asset is the Larder gold undertaking positioned within the Abitibi greenstone belt of Northern Ontario. The property hosts three high-grade gold deposits alongside the Cadillac-Larder Lake Break, and is 35 km east of Kirkland Lake. Complete gold sources on the deposits are estimated at 388,000 oz indicated and 933,000 oz inferred.
“Gatling’s Larder property provides us a considerable toe maintain alongside this regionally productive gold-bearing construction the place we imagine extra gold ought to be findable,” George Paspalas, MAG Silver’s president and CEO, commented in a information launch.
MAG is primarily targeted on silver-gold dominant initiatives within the Americas. Its undertaking portfolio is anchored by Juanicipio silver undertaking (44% owned) in Mexico, being developed with Fresnillo Plc (56%), the operator.