In addition, MAG has agreed to provide Gatling with a bridge loan of up to C$3 million to finance the company’s accounts payable and operating expenses. The loan is convertible into 19.9% of Gatling’s issued and outstanding shares.
Shares in Gatling shot up 37% following news of its acquisition by MAG, giving the Ontario-focused gold explorer a market capitalization of C$16.8 million.
Gatling’s prized asset is the Larder gold project located in the Abitibi greenstone belt of Northern Ontario. The property hosts three high-grade gold deposits along the Cadillac-Larder Lake Break, and is 35 km east of Kirkland Lake. Total gold resources on the deposits are estimated at 388,000 oz indicated and 933,000 oz inferred.
“Gatling’s Larder property gives us a substantial toe hold along this regionally productive gold-bearing structure where we believe more gold should be findable,” George Paspalas, MAG Silver’s president and CEO, commented in a news release.
MAG is primarily focused on silver-gold dominant projects in the Americas. Its project portfolio is anchored by Juanicipio silver project (44% owned) in Mexico, being developed with Fresnillo Plc (56%), the operator.
