M&As this week: CopperBank Resources, E2 Metals, Katoro Gold

29 June 2018 (Last Updated July 27th, 2018 07:32)

CopperBank Resources has entered a definitive arrangement agreement to purchase the entirety of the issued and outstanding shares in Redhawk Resources.

CopperBank Resources has entered a definitive arrangement agreement to purchase the entirety of the issued and outstanding shares in Redhawk Resources.

Each Redhawk shareholder is expected to receive approximately 0.929 shares in Copper Bank as part of the deal.

CopperBank will issue a total of approximately 66.15 million common shares to Redhawk shareholders under the arrangement.

The current CopperBank shareholders will own approximately 75% share in the company following the acquisition, while the former Redhawk shareholders will hold the remaining 25%.

CopperBank has engaged Haywood Securities as its financial advisor and Maxis Law Corporation as legal counsel in support of the deal, while Redhawk has engaged BennettJones as its legal counsel for the transaction.

“Katoro Gold has entered a conditional agreement with Kibo Mining (Cyprus) to acquire Kibo Nickel Limited and its wholly owned subsidiary Eagle Exploration.”

CopperBank Resources is engaged in the development of world-class copper properties, while Redhawk Resources specialises in mineral resource exploration and development.

Both companies are based in Canada.

E2 Metals has entered a binding agreement to acquire a 100% stake in Cobalt Magnetic, the owner of the Cootamundra cobalt-nickel project.

E2 Metals has agreed to pay A$1.5m ($1.1m) in cash to the vendors as part of the consideration, in addition to offering a 1.5% net smelter royalty on production from the Cootamundra project.

E2 Metals is engaged in mineral exploration and development, while Cobalt Magnetic is a private company.

Both organisations involved in the transaction are based in Australia.

Katoro Gold has entered a conditional agreement with Kibo Mining (Cyprus) to acquire Kibo Nickel Limited and its wholly owned subsidiary Eagle Exploration, which owns the Haneti nickel project.

Katoro Gold has agreed to issue 15.38 million new ordinary shares to Kibo as part of the acquisition, which are worth a combined £200,000 ($261,548).

Kibo will also receive a 2% royalty payable on any sales revenue related to nickel or nickel concentrates recovered from the Haneti project.

UK-based Katoro Gold is focused on the exploration and development of mineral properties in Tanzania, while Kibo Nickel and Eagle Exploration are based in Cyprus.

Spitfire Materials Limited (Spitfire) and Excelsior Gold (Excelsior) have entered a merger agreement to form a new diversified gold company.

Spitfire is expected to acquire all the issued capital of Excelsior as part of the merger.

The company will also issue one new share for every 2.208 Excelsior shares currently held under the deal.

Spitfire shareholders are slated to own approximately 58.3% of the newly formed company, while Excelsior shareholders will hold the remaining 41.7%.

Spitfire has engaged Hartleys Limited as corporate adviser and DLA Piper as legal adviser for the transaction, while Excelsior has engaged Steinepreis Paganin as its legal adviser.

Excelsior Gold is a self-funded gold exploration and development company, while Spitfire Materials is primarily engaged in the exploration, acquisition and consolidation of gold deposits.

Both companies involved in the merger are based in Australia.