Following the completion of the merger, the existing shareholders of Barsele Minerals and Gold Line Resources will own around 80% and 20%, respectively, of the new combined entity

Barsele Minerals Gold Line

Barsele Minerals and Gold Line to merge to create a Scandinavian-focused district-scale gold exploration and development company. (Credit: Goldline Resources)

Canadian junior mineral explorers Barsele Minerals and Gold Line Resources have agreed to merge in a move to create a Scandinavian-focused district-scale gold exploration and development company.

According to the terms of the agreement, Barsele Minerals will acquire all of Gold Line Resources’ issued and outstanding common shares in exchange for common shares of the former.

The shareholders of Gold Line Resources will be issued 0.74 Barsele Minerals shares for each Gold Line Resources share held.

Following the completion of the merger, the existing shareholders of Barsele Minerals and Gold Line Resources will own nearly 80% and 20%, respectively, of the new combined entity.

The combined company’s gold portfolio will include the advanced stage Barsele gold project located in the mining region of Västerbottens Län, Northern Sweden.

Currently, the Barsele gold project is being advanced by Barsele Minerals in partnership with Agnico Eagle Mines.

Besides, the new entity’s gold exploration portfolio will comprise a district-scale property package located on the Gold Line Mineral Belt in Sweden and the Oijärvi gold project located in the Oijärvi Greenstone Belt of Finland.

Gold Line Resources president and CEO Taj Singh said: “We are very pleased to be combining with Barsele. The Barsele team has done a tremendous job advancing the Barsele Project from an exploration stage project to a joint venture with Agnico.

“This combination gives Gold Line shareholders a more immediate re-rating and return potential through the advanced stage Barsele Project, while maintaining exposure to the new discovery potential across our district-scale gold exploration portfolio.”

In line with the merger, Barsele Minerals will carry out a financing to raise about C$1m ($0.74m) in a non-brokered private placement. It will fund the exploration programmes across the combined portfolio, costs related to the proposed transaction as well as working capital and general corporate purposes.

Barsele Minerals president and CEO Gary Cope said: “This Transaction is a unique opportunity to bring together complementary assets and teams to create a leading gold company with a district-scale focus in Scandinavia.

“Barsele is delighted to welcome Taj Singh as the new President and CEO and Toby Pierce as Chair following closing.”

The companies intend to close the transaction in February 2024, subject to the receipt of all required approvals and satisfaction of all necessary conditions.

PI Financial is serving as financial advisor to Gold Line Resources. Stikeman Elliott and Cassels Brock & Blackwell are the legal counsels to Barsele Minerals and Gold Line Resources, respectively.