Choice Gold has signed a tripartite letter of intent (LoI) with International Enexco (IEC) and Full Metal Minerals, the wholly-owned subsidiary of Full Metal, to consolidate prospective copper assets in low-risk jurisdictions.
Under the terms of the LoI, each Full Metal shareholder will receive two common shares of choice and one listed share purchase warrant of choice.
Each warrant will be exercisable for a period of five years at a price of $0.10 per share, in exchange for the acquisition of Full Metal Minerals.
In parallel, each IEC shareholder will receive 8.8 common shares of choice and 4.4 warrants, in exchange for the acquisition of Enexco, IEC's wholly-owned subsidiary that holds the Contact Copper project in Nevada.
Full Metal holds the Pyramid Copper project in Alaska and IEC holds the Contact Copper project in Nevada.
Choice Gold believes that the transaction will give the company 100%-ownership of copper exploration and development assets in excellent mining jurisdictions, providing shareholders with leverage to copper.
The deal will provide exposure for projects in northern Nevada and to the prospective Pyramid copper exploration project in Alaska, the company said.
Choice Gold chairman Gianni Kovacevic said the company aims to satisfy a consolidation demand from its global pool of natural resource investors and simultaneously offers a well managed vehicle to investors.
"Furthermore, with our focused team we will work hard to create additional shareholder value by aggressively assessing various other projects available at this time," Kovacevic said.
The transactions are expected to close in June.
In addition to the deal, IEC has signed a LoI with Denison Mines for the latter to acquire all of the issued and outstanding common shares of IEC, except for the Enexco US subsidiary holding the Contact Copper project.