Sells old asset for US$8.5m cash and shares

Very good news announced on the TSX.
This is one of the old assets acquired during the merger.
Management have been able to realise some real value. It was not in the current share price and its cranked the cash up by another US$1.5m ($2m) in the front end with mile stones of another US$6.5m to come in further cash and shares.
Hope those new shares fly in this gold market.


Subiaco, Western Australia (FSCwire) - RTG Mining Inc. (“RTG”, “the Company”) (TSX Code: RTG, ASX Code: RTG) is pleased to announce that Thor Explorations Ltd (“Thor”), a TSX-V listed company, has agreed to acquire RTG's interest in the Segilola Gold Project for total consideration of up to US$8.5m, including US$3m of consideration upfront. The consideration comprises the following components:

• US$1.5m in cash on completion;

• US$1.5m worth of shares in Thor on completion, issued at a deemed price of C$0.115 per share (being the price at which Thor will issue shares under the capital raising it is conducting in conjunction with the transaction);

• US$2m in cash payable on the earlier of (i) closing of the financing for development of the full scale mine or (ii) 24 months after completion; and

• a 1.5% royalty on the Segilola Gold Project, capped at an aggregate of US$3.5m.

Closing of the transaction is conditional on (amongst other things) the parties obtaining all necessary regulatory approvals and consents, no material adverse change occurring before Closing, Thor completing a capital raising of not less than US$4 million, and the agreement pursuant to which Thor has agreed to acquire the balance of the Segilola Gold Project from the other project owner remaining in effect and either completing, or Thor being satisfied that it will complete.



Subject to satisfaction of the conditions, Closing is anticipated to occur on or before 31 July 2016.