Oct 26 2010
Fronteer Gold (TSX:FRG)(NYSE Amex:FRG) announces that it has signed a definitive agreement to sell a 100% interest in 10 gold properties in Nevada to Bridgeport Ventures (TSX:BPV).
The Agreement includes projects derived principally from Fronteer Gold's Nevada Eagle portfolio purchased earlier this year (see April 26, 2010, press release).
Under the terms of the Agreement, Bridgeport Ventures will issue an aggregate of 4.5 million common shares as consideration for the sale. In addition, Fronteer Gold will reserve a 2% Net Smelter Return royalty on each of the 10 projects. At the close of trading on October 22, 2010, the share consideration was valued at $5.6 million. The transaction is expected to close before November 15, 2010, and remains subject to customary regulatory approvals.
"Partnering with an experienced and well-funded management team such as Bridgeport Ventures gives Fronteer Gold additional exposure to near-term exploration success while we dedicate our full attention and resources to advancing our Long Canyon, Northumberland and Sandman gold deposits to production," says Fronteer Gold President and CEO Mark O'Dea.
With more than 70 gold projects in Nevada and bordering states, Fronteer Gold has built an exceptional growth pipeline. The Agreement is consistent with Fronteer Gold's history of seeking joint-venture arrangements, or tactical divestments of assets, that afford the company the opportunity to maintain its strong treasury, create immediate value for shareholders, and provide ongoing exposure to exploration upside through retained interests and shareholdings.
Source: Fronteer Gold