Goldshore Resources (TSXV: GSHR) is evidently gearing up for the future development of their Moss Gold project, announcing this morning that they have repurchased an outstanding net smelter return royalty from Wesdome Gold (TSX: WDO).
The transaction has seen Goldshore repurchase a 1% NSR royalty on Moss Gold for total consideration of $7.5 million. Consideration under the transaction is to consist of $5.0 million in cash and the issuance of 3.33 million shares at a price of $0.60 per share.
“The buyback of the 1% NSR further consolidates the ownership of the Moss Gold project, where our team has unlocked significant value since the outlining of a strategic plan in June of last year. With continued drilling success and expected future resource growth, it is prudent to exercise this right given the anticipated high return on investment,” commented Goldshore CEO Michael Hendrichsen.
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The transaction is expected to close July 21.
Separately, 12.5 million common shares have been issued to Wesdome as part of the final payment to acquire the Moss Lake property, resulting in Goldshore now holding a 100% interest in the property. A separate agreement to acquire 1.5% of a 2.5% net profit interest royalty has also been entered into, with consideration for that purchase to amount to 1.0 million shares at a price of $0.33 per share. A further $300,000 in common shares is to be issued in four years in connection with that sale.
Goldshore Resources last traded at $0.335 on the TSX Venture.
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