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May 27, 2016
Wesdome Gold Mines Completes Purchase of Two Gold Exploration Properties
On May 27, 2016, Wesdome Gold Mines Ltd. (TSX: WDO) and Canoe Mining Ventures Corp. (TSXV: CLV) announced that the parties completed a transaction whereby Wesdome purchased from Canoe Mining a 100% interest in the Coldstream Project ("Coldstream") and the Hamlin-Deaty Creek Property ("Hamlin"), which are near to Wesdome's Moss Lake properties located 100 kilometres due west of Thunder Bay, Ontario, Canada (collectively, the "Properties").
With this acquisition, Wesdome is consolidating its land position in the Shebandowan Greenstone Belt. The acquired land flanks Wesdome's Moss Lake property and includes the former producing Coldstream Mine and East Coldstream gold deposit and their potential untested extensions. This acquisition also eliminates a historically inconvenient property boundary immediately along strike of the 3 million ounce Moss Lake gold deposit. This property boundary area has never been drilled and the acquisition provides the opportunity to conduct further drilling along strike.
Pursuant to the terms and conditions of the Purchase Agreement, Wesdome acquired the Properties from Canoe Mining free from all liens, mortgages, charges, pledges, encumbrances or other burdens with all rights now or thereafter attached thereto (other than with respect to any royalties set forth in the Purchase Agreement). As consideration for the Properties, Wesdome paid or issued to Canoe Mining the following:
(a) with respect to the purchase of the Coldstream portion of the Properties: (i) an aggregate of $400,000 cash; and (ii) 454,545 common shares of Wesdome; and
(b) with respect to the purchase of the Hamlin portion of the Properties, an aggregate of $100,000 cash.
Wesdome is in its 28th year of continuous gold mining operations in Canada. The Company is currently producing gold at the Eagle River Complex located near Wawa, Ontario from the Eagle River and Mishi gold mines. Wesdome's goal is to expand current operations at both mines over the next four years through mill expansion and exploration. Wesdome has significant upside through ownership of its two other properties, the Kiena Mine Complex in Val d'Or, Quebec and the Moss Lake gold deposit located 100 kilometres west of Thunder Bay, Ontario. These assets are being explored and evaluated to be developed in the appropriate gold price environment.
Aird & Berlis LLP advised Wesdome with a team that included Eldon Bennett (Mining), Geoff Clarke, Jonathan Tong, Daniel Everall (Mining & Corporate Finance), Derek McCallum and Scott Stoll (Mining & Real Estate/ Environmental).