White Gold Corp. (TSX.V:WGO) entered into a binding letter agreement to acquire the QV Gold Project from Comstock Metals Ltd. (TSX.V:CSL) (Comstock) for CAD 2.7 million.
The acquisition remains subject to various closing conditions, including completion by White Gold of satisfactory due diligence, no material adverse change occurring with respect to the project prior to the closing date and receipt of all requisite third-party consents and all other necessary regulatory and other approvals, including, without limitation, the approval of the TSXV. Red Cloud Klondike Strike Inc. acted as financial advisor to Comstock and Folger, Rubinoff LLP acted as Comstock's legal advisor. Cassels Brock & Blackwell LLP acted as legal advisor to White Gold Corp. As an advisor to Comstock on this transaction, Red Cloud is entitled to the payment of advisory fees equal to 5% of the value the transaction up to CAD 2 million and 3.5% of the value of the transaction in excess of CAD 2 million. The fees may be satisfied in part by the receipt of shares and warrants in White Gold Corp.