GFK Resources Inc.
, Stock Forum
) has completed the closing of the previously announced option agreement dated Dec. 11, 2013 with Adventure Gold Inc
., a mineral exploration company, pursuant to which GFK has acquired an exclusive option to earn up to a 100% interest in 446 claims covering an area of 22,189 hectares known as the Casa-Cameron project.
The Casa-Cameron project, located in the Abitibi region of Quebec, is prospective for gold.
According to the GFK Resources press release
, in accordance with the agreement, GFK has proceeded with the first payment to Adventure Gold by issuing 2.0 million common shares and paying an amount of $250,000.
The closing was subject to numerous conditions including the delivery of the required closing documents and the receipt of the required corporate and regulatory approvals.
Given that Marco Gagnon, President of Adventure Gold, is also a director of GFK, the agreement constitutes a "Non Arm's Length Party" transaction within the meaning of the policies of the Exchange, and was therefore subject to the approval of the disinterested shareholders of GFK, which was obtained by way of written consent as permitted by the policies of the Exchange.
The parties now intend to precede with the $1.5 million phase 1 program as recommended by the technical report on the project prepared in accordance with NI 43-10. The Phase 1 Expenditures are a firm commitment of GFK.
GFK is an exploration-stage company focused on mineral properties in Canada.
On Wednesday, GFK rose 27.9% and was trading at $0.275 a share. The company had a market cap of $9.7 million, based on 35.4 million shares outstanding.