First Mining Finance Corp. (“First Mining”) is pleased to announce the successful completion of the previously announced amalgamation (the “Transaction”) with Tamaka Gold Corporation (“Tamaka”), a privately held mineral exploration company which owns the Goldlund project located in northwestern Ontario.
As a result of the Transaction, Tamaka has become a wholly-owned subsidiary of First Mining and the shareholders of Tamaka received an aggregate of approximately 92.5 million common shares of First Mining. In addition, under the terms of the Transaction, certain shareholders who held in the aggregate approximately 39.6% of the outstanding Tamaka shares, have deposited the First Mining shares received by them under the Transaction into escrow. Twenty percent of such escrowed shares will be released from escrow one year following the closing date of the Transaction and an additional 20% will be released every six months thereafter, with the final tranche released on the date which is three years after closing.
Keith Neumeyer, Chairman of First Mining, stated: “The closing of the Tamaka transaction marks our eighth acquisition since listing the Company on the TSX-Venture Exchange in April 2015. We believe Goldlund has tremendous exploration potential and we are very pleased with the portfolio of high-quality gold assets we have accumulated to date. First Mining plans to now focus on enhancing the value of its current assets while monitoring the market for additional accretive acquisition opportunities.”
With the Transaction having been completed, the Company’s intent is to commission an updated National Instrument (“NI”) 43-101 compliant resource estimate and technical report on the Goldlund project. Completion of this new resource estimate will include confirmatory analysis of previous assay results, however, it is not expected to require any additional exploration or drilling at this time. This update may result in an adjustment to current historical resource estimates on the Goldlund project upon completion.
Dr. Christopher Osterman, P. Geo., Chief Executive Officer of First Mining, a Qualified Person for the purposes of NI 43-101 has reviewed and approved the scientific and technical content of this news release.