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Client Work

Pelangio Mines completes sale of Detour Lake Property for US$5 million

Fasken
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Client

Pelangio Mines

On January 31, 2007, Pelangio Mines Inc. announced that it had closed its previously announced sale of its Detour Lake Property to Detour Gold Corporation, a newly formed company part of the Hunter Dickinson group of resource companies. Pelangio and Detour Gold entered into an Asset Purchase Agreement on August 21, 2006, whereby Pelangio's Detour Lake Property would be transferred to Detour Gold, in consideration for 20 million common shares of Detour Gold, $5 million cash payment and the funding of work on the Detour Lake Property from the date of the Agreement to closing. The issuance of the 20 million Detour Shares to Pelangio represents approximately 50% of the issued and outstanding Detour Shares. The transaction converts Pelangio's interest in the Detour Lake Property from a direct project interest into an indirect interest through an equity ownership in Detour Gold and is consistent with Pelangio's strategy of seeking partners for, or selling an interest in promising properties that are reaching the development stage.Pelangio was advised in this sale by Fasken Martineau with professionals from the firm's Vancouver, Calgary, Toronto and Québec City offices. Lata Casciano led the team, and was assisted by Sarah Mamoser, Josh Lewis, Richard Peters, Kevin Clinton, Neil Smiley, Ianny Xénopoulos, Frank Schober (tax), and real estate paralegal Linda Caldwell.

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