Greenridge Exploration Inks Deal to Sell Electra Nickel Project for C$1.175M in Cash and Shares
GXPLF has more than doubled off its 52-week low of $0.1 on light trading volume (0.1× avg).
Summary
Greenridge Exploration has entered into an option agreement with Thunder Gold Corp. to dispose of its 4,571-hectare Electra Nickel project. Thunder Gold can earn a 100% interest by paying Greenridge CAD$175,000 in cash and issuing 1,000,000 common shares over a 24-month period. For a company with a market capitalization of approximately $16 million, this transaction, valued at roughly C$1.175 million (cash plus shares), represents a material monetization of an asset. This provides Greenridge with non-dilutive capital and shares in another exploration company, which can be used to fund its extensive portfolio of other critical mineral projects, particularly its larger uranium holdings. Traders will watch for the successful completion of the payments and share issuances over the next two years.
At the time of this announcement, GXPLF was trading at $0.27 on OTC in the Industrial Applications And Services sector, with a market capitalization of approximately $16.1M. The 52-week trading range was $0.10 to $0.75. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: GlobeNewswire.