Australian mining company Beadell Resources has signed an agreement to merge with Canada-based Golden Harp Resources.
The new merged entity will be known as Americano Mining and is set to become a dual-listed firm on both the Australian Securities Exchange (ASX) and the TSX Venture exchange (TSXV).
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Beadell noted that the proposed merger will allow the company’s shares to appear on the TSXV listing, which will facilitate better access to North American capital markets.
Golden Harp will raise C$4m ($3m) via a private placement of common shares as part of the arrangement, with the main subscribers set to be Sprott and entities associated with the Lundin family.
Additionally, Golden Harp will be required to obtain shareholder approval for a one-for-11 consolidation of its issued capital, as well as other matters pertinent to the transaction.
Beadell Resources managing director and CEO Simon Jackson said: “It has long been my view that the Tucano mine needs to be listed in Canada, along with the vast majority of South American gold developers and producers.
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By GlobalData“We are delighted to have received the support of Sprott and the Lundin family as they become new shareholders of Americano.
“These new shareholders bring extensive market following and experience to the Tucano story, and we look forward to growing Americano into an intermediate gold producer.”
Beadell shareholders are required to offer 14.25 fully paid ordinary shares in exchange for each post-consolidation Golden Harp common share held under the merger agreement.
Existing Beadell shareholders are expected to hold around 94.5% of the issued capital of Golden Harp following the closure of the deal.
The merger is conditional upon the receipt of approval by Beadell and Golden Harp shareholders, as well as the relevant court and regulatory authorities.
