Touchstone Gold merges with Atlantis Gold Mines

6 August 2012 (Last Updated August 6th, 2012 18:30)

Touchstone Gold will merge with Atlantis Gold Mines to undertake gold exploration and development focused in Colombia.

Touchstone Gold will merge with Atlantis Gold Mines to undertake gold exploration and development focused in Colombia.

As part of the three-cornered merger, a wholly-owned subsidiary of Touchstone will amalgamate with Atlantis to form a new company named Amalco.

All holders of Atlantis common shares will receive one common share of Touchstone for each Atlantis share held.

The merger is expected to represent a significant expansion of highly prospective land packages in an area bordering existing activities and will consolidate operations in a region with a history of high-grade gold discoveries and production.

Touchstone owns 15,000m of drill results at Rio Pescado, which include 8.75g/t gold over 28.25m from hole LPD-1279 and 8.70g/t gold over 16.80m from hole LPD-1286.

Atlantis Gold's Segovia-Remedios Gold Belt coverers 309km² and includes over 12km of prospective strike length.

Touchstone plans to expand the current exploration with the prospective gold mineralisation targets in the next few months.

Touchstone CEO David Wiley said that the merger benefits the shareholders of both Touchstone and Atlantis through consolidation of quality neighbouring assets and the creation of critical mass in a prolific gold district.

"The combined company's significant portfolio will include over 12km in strike length with a focus on high-grade gold projects in the high potential Frontino/Segovia Gold Belt and South Bolivar regions," Wiley added.

"The company will also be able to capitalise on real synergies and extensive geological expertise from our highly experienced personnel."