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Capstone Mining Reaches Agreement to Sell Kutcho Project
Jun. 16, 2017 08:42AM PST
Base Metals Investing Capstone Mining Corp. (“Capstone” or the “Company”) (TSX: CS) has entered into a definitive share purchase agreement (the “Agreement”) pursuant to which it has agreed to sell its Kutcho development project to Desert Star Resources Ltd. (TSX-V: DSR) (the “Transaction”). Under the terms of the Agreement, Capstone will receive C$28.8 million in cash, common shares …
Capstone Mining Corp. (“Capstone” or the “Company”) (TSX: CS) has entered into a definitive share purchase agreement (the “Agreement”) pursuant to which it has agreed to sell its Kutcho development project to Desert Star Resources Ltd. (TSX-V: DSR) (the “Transaction”). Under the terms of the Agreement, Capstone will receive C$28.8 million in cash, common shares of Desert Star representing 9.9% of the issued and outstanding shares upon completion of the Transaction, and will have the right to nominate one representative to the Desert Star board of directors under certain circumstances.
As quoted in the press release:
“The divestiture of Kutcho is consistent with our strategy to focus on our core assets,” said Darren Pylot, President and Chief Executive Officer of Capstone. “This agreement allows us to retain exposure to the Kutcho project, while strengthening our balance sheet. We look forward to seeing the Kutcho project advance under Desert Star’s ownership.”
