Altus Strategies has signed a letter of intent (LoI) to acquire the entire issued and outstanding common shares of Legend Gold, a company with a portfolio of gold projects in the Republic of Mali.
The all-stock transaction is set to be completed by way of a plan of arrangement.
Under the LoI, Altus will offer three ordinary shares to Legend shareholders for each Legend share they hold, resulting in the issuance of a total of 41,060,256 new Altus Shares.
Altus Strategies chief executive Steven Poulton said: “The projects are at various stages of advancement and offer the potential for near-term cashflow and discovery upside.
“This is a potentially significant growth opportunity for the company and we look forward to updating shareholder as the proposed transaction progresses.”
The portfolio of Legend includes the Korali Sud, Lakanfla, Sebessounkoto Sud, Djelimangara, Pitiangoma Est, and Tabakorole licences.
The 83km² Korali Sud licence hosts the Diba gold project, where drilling includes intersections of 5.36g/t Au over 13m and 13.88g/t Au over 8m.
Covering 24km², the Lakanfla licence is said to host a potential karst deposit and Legend has identified six high priority targets for follow up exploration.
The 106km² Pitiangoma Est licence is a joint venture project with Resolute Mining, which has the right to earn 70% interest in the licence by incurring an expenditure of $3m and completing a feasibility study.
Once the transaction is closed, Legend shareholders will hold 27.6% of the undiluted issued share capital of Altus.
The transaction is conditional on factors such as due diligence, final documentation, approvals by Legend shareholders and regulatory authorities.