McFarlane Lake takes 19.9% stake in iMetal Resources for $1.42M

McFarlane Lake Mining has closed a strategic investment in iMetal Resources, buying 14.2 million units for about $1.42 million and picking up a 19.9% stake in the junior explorer.

The deal, announced Monday, gives McFarlane a board seat, the right to participate in future iMetal equity sales, and technical oversight over exploration at iMetal's Gowganda property, according to the companies.

Each unit includes one iMetal share and one warrant. The warrants allow McFarlane to buy additional iMetal shares at $0.175 apiece for three years. iMetal can accelerate that deadline if its stock trades above $0.40 for 20 consecutive days on the TSX Venture Exchange.

McFarlane Lake Mining is a Canadian gold exploration company focused on its Juby project near Gowganda, Ontario. The location matters. Both companies hold ground in the same part of the Abitibi Greenstone Belt. McFarlane's technical team will now help direct iMetal's work on the Gowganda property, subject to board approval.

iMetal's private placement was set at up to 30 million units at $0.10 each, aiming for gross proceeds of $3 million. McFarlane's purchase represents roughly half the deal. The company said it bought the stake for investment purposes and may adjust its position over time depending on market conditions.