Golden Band Resources Inc. is selling one of its joint-venture properties.
The Iskut JV site, 52.5 per cent owned by the Saskatoon company and 47.5 per cent owned by American Bonanza Gold Corp., is just north of the former-producing Snip mine in northwestern British Columbia.
The parties said Wednesday they signed a deal with Skyline Gold Corp. to sell the Iskut JV in exchange for five million of Skyline's common shares and 2.5 million common share purchase warrants at an exercise price of 50 cents per share for a period of five years.
In April, Golden Band and American Bonanza acquired the property from Barrick Gold Inc. The local company says upon review of the site and its options to advance it, it decided to accept Skyline's offer for the Iskut JV.
"This transaction with Skyline allows Golden Band to participate in a very prospective area while retaining a focus on its core business in the La Ronge gold belt," the company said in a news release.
"Importantly, Golden Band retains its first right of refusal with Barrick Gold Inc. to acquire the adjacent Snip mine property."
Between 1991 and 1999, the Snip mine produced 1.03 million ounces at 25 grams per tonne gold.
