Scorpio Gold Corp.
, Stock Forum
) signed a binding letter of intent (LOI) and received a $250,000 non-refundable deposit for the sale of certain mining interests, known as the the Pinon properties, to an affiliate of Gold Standard Ventures Corp
. (TSX: V.GSV
, Stock Forum
The Pinon properties are located in Elko County, Nevada at the southern end of the prolific Carlin Trend.
According to the Scorpio Gold press release
, Gold Standard will pay the company a total of $8.5 million in cash and issue Scorpio Gold 5.5 million common shares in its capital stock.
"This transaction works extremely well for both companies,” said Peter J. Hawley, CEO of Scorpio. “Speaking for Scorpio Gold, the combination of cash, stock and bonus consideration provides the company and its shareholders with significant immediate and long term benefits from a non-core asset. Given today's market we feel that it makes more sense to concentrate our efforts and financial resources on expanded exploration and development at our producing Mineral Ridge gold mine and the advanced stage Goldwedge project.”
Scorpio ‘s focus is operating the Mineral Ridge open pit heap leach gold mine in Esmeralda County, Nevada where it holds a 70% stake.
On Wednesday, Scorpio was down 1.8% to 27 cents. The company has a market cap of $33.7 million, based on 124.9 million shares outstanding.