Sun Metals Corp. ("Sun Metals") (TSXV: SUNM) and Lorraine Copper Corp. ("Lorraine") (TSXV: LLC; OTCQB: LRCPF) announce the successful completion of Sun Metals' previously announced acquisition of Lorraine pursuant to which Sun Metals has indirectly acquired all the issued and outstanding common shares of Lorraine (each, a "Lorraine Share").


Image: Sun Metals completes acquisition of Lorraine. Photo: courtesy of rawpixel/Pixabay.

With the completion of the transaction, Sun Metals now owns a 100% interest in the Stardust project in northcentral British Columbia (the “Stardust Project”).

Summary of the Acquisition

Pursuant to a court approved statutory plan of arrangement under the Business Corporations Act (British Columbia) (the “Arrangement”), shareholders of Lorraine (the “Lorraine Shareholders”) received 0.54 (the “Exchange Ratio”) of a common share of Sun Metals (each whole share, a “Sun Metals Share”), for every Lorraine Share held.

The Arrangement has been implemented through a triangular amalgamation under the Business Corporations Act (British Columbia) in which Tsayta Resources Corporation, a wholly-owned subsidiary of Sun Metals,  has amalgamated with Lorraine to become a wholly-owned subsidiary of Sun Metals.

Upon closing of the Arrangement: (i) all outstanding stock options of Lorraine were exchanged for options to purchase Sun Metals Shares on the basis of the Exchange Ratio; and (ii) all unexercised Lorraine Share purchase warrants were exchanged for warrants to purchase Sun Metals Shares on the basis of the Exchange Ratio and will expire in accordance with their current expiry dates.

Following completion of the acquisition, Sun Metals’ issued and outstanding shares totals approximately 120.5 million and its market capitalization amounts to approximately $77.1 million, based on Sun Metals’ closing price on the TSX Venture Exchange on April 11, 2019.

Lorraine Shares are expected to be delisted from the TSX Venture Exchange effective at the closing of the market on April 12, 2019.

Source: Company Press Release