Australian gold and copper miner SolGold has concluded the merger deal with Canada-based Cornerstone Capital Resources, which valued the latter at £96.7m.
The deal saw SolGold acquiring all issued and outstanding Cornerstone common shares.
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Cornerstone shareholders, other than SolGold, also received 15 SolGold ordinary shares for each share held.
With the completion of the deal, Cornerstone will become SolGold’s wholly owned subsidiary and obtain complete ownership of the Cascabel project.
Located in northern Ecuador, the Cascabel project is a large high-grade copper-gold porphyry exploration mine.
The project’s main target is the Alpala deposit.
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By GlobalDataSolGold interim CEO Scott Caldwell said that the deal bolsters the firm’s strategic opportunities, as well as simplifies its structure.
He noted: “This is an exciting transaction for all stakeholders that simplifies our structure and strengthens SolGold’s strategic opportunities.
“We are focused on maximising shareholder value and advancing the strategic review as a top priority. We will maintain our disciplined approach to capital allocation as we de-risk and advance Cascabel and priority exploration projects.”
The deal was announced in October 2022 and secured the approval of Cornerstone shareholders last month.
On 28 February 2023, Cornerstone Shares will be delisted from the TSX Venture Exchange.
In a statement, SolGold further said: “Applications have been made for the SolGold Shares to be admitted to listing on the Standard Segment of the Official List (under Chapter 14 of the Listing Rules) and to trading on the Main Market of the London Stock Exchange.
“It is anticipated that admission will become effective and that dealings in the SolGold Shares will commence at approximately 8:00am (London time) on 27 February 2023. Applications have also been made for the SolGold Shares to be listed and posted for trading on the TSX.”
Dmyant Sangha (including Maxit Capital LP a controlled affiliate) now owns 153.36 million SolGold Shares, equating to a 5.1% stake in the firm.
