All the companies involved in the transaction are based in Australia.
Arete is a private equity firm, while Stawell Gold Mines and Kirkland Lake Gold are engaged in gold exploration.
GFG will issue 0.15 of a common share for one Rapier common share, equivalent to approximately C$0.08 ($0.06) a Rapier share, under the agreement.
However, the acquisition is subject to approval from Rapier Gold shareholders.
The company has engaged Macquarie Capital Markets Canada as its financial adviser and DuMoulin Black as legal adviser for the transaction, while Rapier has engaged Trinity as its financial adviser.
GFG Resources is a gold and silver exploration company, while Rapier Gold us involved in gold exploration.
The acquiring company will purchase approximately 30.96 million shares priced at HK$3 ($0.38) each.
Based in the UK, Silvery Boom is an investment holding company, while China Metal Resources Utilization is a Hong Kong-based company engaged in copper exploration.