The company sold the Elk Gold Project in exchange for the issuance of 37 million common shares of Gold Mountain and a 2% net smelter returns royalty pursuant to an asset purchase agreement dated 15 February 2011, as subsequently amended between the companies.
The shares will be subject to resale restrictions and escrow requirements under applicable securities laws and policies of the exchange, and in addition, two million of the shares will be subject to additional escrow requirements, the company said.
Almaden chairman J Duane Poliquin said this transaction gives Almaden the option of maintaining exposure to the potential growth of Elk and future production through a meaningful shareholding in a diversified production management team.
"Ultimately, this capital will be deployed to build Almaden, leaving our company in an exceptionally strong strategic and financial position," Poliquin said.
