Hidefield Gold is selling its interest in the South Estelle gold project in Alaska to Millrock Resources Inc.
Millrock was previously going to earn an 80% stake in the project but has decided to buy the project instead.
Hidefield has a 60% stake in the South Estelle gold project and will receive $100,000, 1m Millrock shares and a 1% net smelter royalty from future production. Millrock shares are trading at around 5.5p a share, suggesting that the shares could be worth more than £50,000.
Millrock has to gain approval for the deal from the Toronto Venture Exchange. The formal purchase agreement should be complete by 17 February 2009.
At 0.625p a share, Hidefield is valued at £1.74m.
At the end of June 2008, Hidefield had £257,000 cash in the bank and there was a related party loan of £126,000. The cash outflow in the six month period was just over £1m.
Hanson Westhouse was appointed broker in November 2008.
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