February 3, 2013
(General Metals Corporation) announced recently that they entered into a letter of intent with Open Gold Corp ] in order to raise capital and thus provide greater access to their capital needs in the future. As per the terms, more than $2 million are expected to be raised.
The completion of the transaction depends on the final agreement between the two companies. Open Gold should issue shares of the common stock to General Metals so that them and their shareholders will own more than a half of Open Gold’s shares, that include the ones issued for the capital raise.
As this will be completed, there will be two directors from General Metals, two from Open Gold and another independent director, accepted by both parties. Less than $2 million of the funding will improve the resource base of Independence Project.
General Metals Corporation is an aggressive junior mining exploration and development company. The firm is trying to re-open its gold and silver mining project located in a strategic place in the Mining District of Nevada.