The proposed merger, which has been unanimously recommended by the board of directors of both parties, will be implemented as a reverse take-over (RTO), with Newrange as the surviving entity
Newrange to acquire Mithril Resources. (Credit: nettetal10 from Pixabay)
Canadian mining company Newrange Gold has executed a binding Scheme Implementation Deed (SID) to acquire the entire issued capital of Australia-based Mithril Resources, valued at around A$11.8m ($7.7m).
The merger will be implemented as a reverse take-over (RTO), with Newrange as the surviving entity, under the rules of the TSXV.
Newrange is an exploration company listed on the TSXV with a current focus on two highly prospective gold projects in the Red Lake Mining Division of Northwestern Ontario, Canada.
The acquisition is also unanimously recommended by the board of directors of both parties.
Newrange president and CEO Robert Archer said: “Not only does the Copalquin Gold-Silver Project bring tremendous value and upside potential but the combined experience of the new management team and board will provide a strong foundation for future growth in the Americas.
“Exploration and development in the prolific Red Lake District of Ontario is still active and we intend to capitalise on that with further work on our Argosy Gold Mine and North Birch Projects.
“Having projects in two leading mining jurisdictions such as Mexico and Canada provides diversity and lowers the risk for shareholders while increasing the discovery potential.
“We look forward to completing the RTO process and rebranding the company for a fresh start at a time when precious metal prices are on the rise.”
As part of the transaction, John Skeet will be appointed as Newrange’s president and CEO, and Newrange director Robert Archer will be appointed as the company’s executive chairman.
Stephen Layton and Garry Thomas will join the company’s board, directors Ron Schmitz and Colin Jones will continue on the board, while David Cross will continue as CFO and Secretary.
Mithril said that the merger will create a combined entity that is well-positioned to benefit from the growth opportunities at the Copalquin mining district and the two Red Lake District properties.
Mithril CEO and managing director John Skeet said: “In both jurisdictions, the new company will be among numerous other Canadian listed companies active in these prolific mining regions where the properties are located. The merger, and resulting financing, will provide funds to appropriately advance the properties to increase shareholder value.
“The Mithril Board is very pleased to be working with the Newrange Board and extremely proud of the hard work and achievements of Mithril’s Mexico team and the significant progress made in advancing the Copalquin Project to its current exploration and pre-development stages across the Copalquin district.”