O3 Mining Inc. has announce that it has entered into an asset purchase and sale agreement with Patriot Battery Metals Inc. (“Patriot”) to sell its remaining 50% interest in certain mining claims comprising the FCI Property located in James Bay Region of Québec to Patriot in exchange for 1,800,000 common shares of Patriot, and a one-time cash payment of C$3 million from Patriot. Patriot had previously earned a 50% interest in the FCI Claims pursuant to an Earn-in and Joint Venture Agreement, as amended, between O3 Mining and Patriot.
The transaction remains subject to the satisfaction or waiver of customary closing conditions, including the approval of the Canadian Securities Exchange to permit Patriot to issue its common shares to O3 Mining.
Mr. Jose Vizquerra, O3 Mining’s President, Director and Chief Executive Officer commented: “We are pleased to continue to increase value for our shareholders, with no dilution, through divestment of a non core asset as a part of our ongoing strategy. This transaction will improve our cash position as well as support our 2022 drilling program “.
O3 Mining Inc., an Osisko Group company, is a gold explorer and mine developer on the road to produce from its highly prospective gold camps in Québec, Canada. O3 Mining benefits from the support, previous mine-building success, and expertise of the Osisko team as it grows towards being a gold producer with several multi-million-ounce deposits in Québec.