Prestwick Completes Qualifying Transaction to Become Gold Exploration and Development Company and Changes Its Name
Calgary, Alberta--(Newsfile Corp. - October 4, 2024) - Legacy Gold Mines Ltd. (TSXV: LEGY) (formerly Prestwick Capital Corporation Limited) (the "Company") is pleased to announce that is has closed its previously announced "Qualifying Transaction" (the "Transaction") effective October 3, 2024, with the result that the Company is now a Tier 2 mining issuer under the policies of the TSX Venture Exchange (the "Exchange"), holding an option (the "Option") to acquire a 100% undivided interest in and to the mineral claims comprising the Baner gold project located in Idaho County, Idaho, USA (the "Baner Gold Project").
Change of Name and Stock Symbol, Resumption of Trading
Trading in the common shares of the Company is expected to begin on the Exchange under the Company's new name "Legacy Gold Mines Ltd." and new stock symbol "LEGY", on Tuesday, October 8, 2024.
Qualifying Transaction
In closing the Transaction, the Company acquired the Option and paid or issued (as applicable) to Champion Electric Metals Inc. ("Champion"), (a) $75,000, (b) 1.1 million common shares of the Company ("Common Shares") issued at a deemed price of $0.235 per share, and (iii) warrants to purchase up to 200,000 Common Shares at $0.30 per share for two (2) years from the date of issuance.
The Company can exercise the Option and keep it in good standing by making additional cash payments and issuing securities to Champion, as follows:
- Paying or issuing (as applicable) to Champion within 18 months from the completion of the Transaction ("Payment #1 Date"):
- $350,000;
- 200,000 Common Shares; and
- warrants to purchase up to 200,000 Common Shares at the last closing price for the Common Shares prior to the date of issuance, for two (2) years from the date of issuance.
- Paying or issuing (as applicable) to Champion within 12 months from the Payment #1 Date ("Payment #2 Date"):
- $500,000; and
- warrants to purchase up to 200,000 Common Shares at the last closing price for the Common Shares prior to the date of issuance, for two (2) years from the date of issuance.
During the term of the Option, the Company will have the exclusive right to manage and operate all work programs carried out on the Baner Gold Project in its sole discretion. The Company will also be responsible for maintaining the Baner Gold Project in good standing through such time.