Golden Arrow Resources Corporation said Monday it completed the sale of its 75.019% stake in the San Pietro copper project to Capstone Copper Corp. for approximately $25 million.
The deal, announced June 23 and approved by disinterested shareholders on August 21, was settled through the issuance of 2,200,012 common shares of Capstone. The valuation was based on the volume-weighted average closing price of Capstone’s shares over the 10 trading days ending two business days prior to closing, adjusted using the Bank of Canada exchange rate from two business days prior.
New Golden Explorations Atlantida Ltd., Golden Arrow’s subsidiary, received 1,666,914 of the Capstone shares. Sociedad de Servicios Andinos SPA, which held the remaining 24.981% of the joint venture, received 533,098 shares. Transaction costs and taxes totaling $6.55 million were deducted from the consideration, including a $750,000 advisory fee paid to Southern Cone Partners, satisfied via the deduction of 66,000 Capstone shares.
Golden Arrow retained its Atakama gold project and said it plans to expand exploration efforts in Chile and Argentina. The company intends to launch a drilling program at Atakama in the autumn, focusing on further resource delineation and potential development.
