Shares of Junior Miner Climb on News of $7.5M Asset Sale
Sometimes, the smartest move in business is to sell an asset in order to focus on another opportunity with greater potential. The sale not only frees up capital but also allows for more attention and resources to be directed toward the new venture. That’s exactly what one junior mining company announced this morning—and investors are applauding the difficult, but strategic, decision.
Shares of Scorpio Gold Corp. (TSX-Venture: SGN)(OTCQB: SRCRF) are on the move higher as the company has entered into a definitive agreement to sell its wholly-owned subsidiary, Mineral Ridge Gold, LLC, to an unrelated third party for US$7.5 million.
The transaction includes all interests in the Mineral Ridge Project in Esmeralda County, Nevada. The buyer will pay a non-refundable deposit of US$700,000 by August 7, 2025, followed by US$4.3 million at closing, expected by August 25, 2025. An additional US$1.5 million will be held in escrow and released in two equal parts at 3 and 9 months post-closing, with another US$1 million payable on the 12-month anniversary of the closing.
"This transaction represents an important step for Scorpio Gold. By divesting Mineral Ridge, we have eliminated significant annual carrying-cost, which will enable us to focus our financial and strategic resources on the Manhattan District and deploy the proceeds directly into unlocking the value of what we believe is a highly prospective, underexplored asset in a Tier 1 jurisdiction. Over the past year, we've strengthened our technical team significantly, most notably with the addition of Leo Hathaway to both our board and exploration team. Manhattan could be host to a multi-million-ounce gold deposit, and we believe the Transaction will allow us to accelerate our vision for defining that deposit," said Zayn Kalyan, CEO of Scorpio Gold.
Shares of SGN are currently up 6.38% at $0.25 while U.S. listed shares (SRCRF) are up 4.23% at $0.182 in mid-morning trading.
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