Bravada Gold Corp. (TSXV:BVA) announced yesterday that it has signed a letter of intent with a private equity firm under which it will sell the firm its two subsidiaries for C$6.8 million.
The company also said that its board of directors has approved a capital consolidation.
As quoted in the press release:
Purchaser will provide to Bravada a CDN$250,000 senior secured convertible credit facility (the ‘Facility’), to be repaid from Sale Proceeds upon closing of the Transaction. Funds from the Facility will be utilized by Bravada in payment of property expenses of its subsidiaries and transactional costs related to the acquisition of requisite approvals for the Transaction. The two subsidiary companies hold rights to mineral assets in Nevada. Bravada’s Directors have resolved to approve the Transaction; to convene a Meeting of shareholders to consider approval of the Transaction; and have agreed to deposit proxies with respect to their respective shares voting in favour of the Transaction.