- Great Pacific Gold Corp (TSXV: GPAC, OTCQX: FSXLF) completes the sale of its Australian projects for $1 million in cash and 6 million shares of Golden Cross Resources.
- Potential future payments up to $3 million contingent on achieving specific milestones.
- Transaction completed through the acquisition of BC Subco by Golden Cross.
Great Pacific Gold Corp (TSXV: GPAC, OTCQX: FSXLF) has finalized the sale of its Reedy Creek and Providence Projects in Australia to Golden Cross Resources. The transaction, valued at $1 million in cash and 6 million Golden Cross common shares, was executed through the acquisition of BC Subco, the sole shareholder of Providence Gold Pty Ltd, by Golden Cross.
The financial structure of the deal includes an immediate cash payment of $1 million, with $500,000 previously paid and the remaining $500,000 settled at closing. In addition, 6 million common shares of Golden Cross were issued, with varying resale restrictions applied to the shares.
Future payments up to $3 million are tied to specific milestones. These include $1 million payable upon the publication of a technical report confirming a gold resource exceeding 1,000,000 ounces, and $2 million contingent on the commencement of commercial production.
Company insiders participated in the transaction through an investment of $65,000 via Fundco, which was later acquired by Golden Cross, marking the transaction as a "related party transaction" under multilateral regulations.
This strategic divestment allows Great Pacific Gold to monetize its assets while retaining potential upside through milestone-based payments and an equity stake in Golden Cross.
