M&As this week: GreenBank Capital, Bonterra Resources, South32

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

GreenBank Capital has acquired a 50% stake in GBC Grand Exploration as part of a non-material transaction.

GreenBank Capital has acquired a 50% stake in GBC Grand Exploration as part of a non-material transaction.

GreenBank is set to provide merchant banking services to GBC Grand in exchange for the acquisition, as well as assist the company in becoming listed on the Canadian Securities Exchange.

GreenBank is engaged in the merchant banking business, while GBC Grand is a mineral exploration company.

Both companies involved in the deal are based in Canada.

Bonterra Resources and Metanor Resources have entered a binding letter of intent (LoI) to merge and form a new advanced Canadian gold exploration and development company.

The new organisation will be primarily focused on the development of the Urban Barry Quebec Gold Camp.

Bonterra has agreed to acquire all of the issued and outstanding common shares in Metanor, priced at C$0.73 ($0.55) a share, on a fully diluted in-the-money basis as part of the arrangement.

The value of the transaction is equivalent to C$78m ($58.53m).

“South32 Limited has reached an agreement to acquire the remaining 83% of the issued and outstanding shares in Arizona Mining for a sum of $1.3bn (C$1.8bn).”

Bonterra and Metanor’s existing shareholders will hold approximately 58% and 42% stake in the newly formed company respectively following the completion of the deal.

Bonterra has engaged Sprott Capital Partners as its financial adviser and Miller Thomson as legal adviser for the transaction, while Metanor has engaged Irwin Lowy as its legal adviser.

Bonterra is engaged in gold exploration, while Metanor is an emerging gold producer.

Both companies involved in the development are based in Canada.

South32 Limited has reached an agreement to acquire the remaining 83% of the issued and outstanding shares in Arizona Mining for a sum of $1.3bn (C$1.8bn).

The transaction is planned to be conduct through a plan of arrangement and will be funded entirely via cash.

South32 will provide a C$70m ($52.5m) working capital facility to Arizona Mining at commercial rates under the agreement.

The company also intends to either acquire or cancel the outstanding options and warrants in Arizona Mining as part of the initiative.

South32 has engaged Goldman Sachs as its lead financial adviser for the transaction, as well as Canaccord Genuity as an additional financial adviser.

Osler, Hoskin & Harcourt are the legal advisers in Canada, while Perkins Coie has been engaged as legal adviser for the US.

Arizona Mining has engaged Scotiabank as lead financial adviser and Davies Ward Phillips & Vineberg as a supporting legal adviser for the transaction.

South32 is an Australian diversified mining and metals company with operations in Australia, Southern Africa and South America, while Canada-based Arizona Mining is a mineral exploration and development company.

Hancock Prospecting subsidiary Redstone Corporation has submitted a A$390m ($289.87m) takeover bid for Atlas Iron.

The company plans to acquire all the ordinary shares in Atlas Iron in cash at a price of $0.042 ($0.031) a share.

Redstone Corporation is engaged in the exploration of highly prospective copper properties in the West Musgrave region of Western Australia, while Atlas Iron is an independent iron ore developer focused on mining and exporting direct shipping ore (DSO) from its Northern Pilbara operations.

Both companies are based in Australia.