Bonterra proposes merger with rival Canadian gold miner Metanor - https://www.compelo.com/energy/news/bonterra-proposes-merger-with-rival-canadian-gold-miner-metanor/
Bonterra Resources has proposed to acquire rival Canadian gold exploration
and development firm Metanor Resources for C$78m ($58.93m) in an
all-stock deal to expand its position in the Urban Barry Camp in Quebec,
The combined company of Bonterra and Metanor will gain control of three
advanced high grade gold deposits in the form of
Gladiator, Bachelor, Barry along with significant regional priority
targets with resource upside potential.
According to Bonterra, the enlarged firm will also get 100% control of
the only permitted gold mill in the Urban Barry Camp.
The gold mill comes with an expandable centralized production facility
and is surrounded by more than 15 known gold deposits located within a
radius of 100km.
Bonterra expects the merger to help in de-risking its Gladiator project.
The company said that Metanor’s mill infrastructure will give it the
scope to significantly cut down the capital requirements and compress
the timelines to push the Gladiator project towards potential
Bonterra president and CEO Nav Dhaliwal said: “We believe we will be
able to develop a much larger and more significant resource profile
within the Urban Barry Camp. The availability and ownership of a
permitted and expandable processing facility certainly places Bonterra
in an excellent position to rapidly and cost effectively become a
significant Quebec based gold producer.”
As per the proposal, Bonterra will acquire all the shares of Metanor for
C$0.73 ($0.55) in equity consideration.
The exchange ratio of the deal will be 1.6039 Bonterra shares for each
Following the merger, existing Bonterra and Metanor shareholders will
own about 58% and 42% stakes, respectively in the enlarged company.
Metanor chairman and interim CEO Greg Gibson said: “Putting together
two, arguably, undervalued companies like Metanor and Bonterra is
extremely beneficial and logical in a number of ways.
“Resource growth, exploration synergies and de-risking the path to
production are all considerations, as well as potential to access
different and larger markets and shareholders.”
Prior to the acquisition of Metanor, Bonterra plans to spin out its
Larder Lake assets in Ontario along with a specified amount of cash.
The company said that it is planning the move to create a well-
capitalized and new exploration opportunity for its shareholders.
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Enter your email address so we can get in touch. https://www.compelo.com/energy/news/bonterra-proposes-merger-with-rival-canadian-gold-miner-metanor/ http://www.stockhouse.com/companies/quote?symbol=v.btr Eric Sprott Announces Support Agreement with Respect to Proposed Plan of Arrangement Between Metanor Resources Inc. and Bonterra Resources Inc.
V.BTR, V.MTO | 18 hours ago
Read more at http://www.stockhouse.com/news/press-releases/2018/06/18/eric-sprott-announces-support-agreement-with-respect-to-proposed-plan-of#wb40vAfbqUYSG5om.99 http://www.stockhouse.com/companies/quote?symbol=v.mto Bonterra to Acquire Metanor, Expanding Strategic Position in Urban Barry Camp and De-risking Potential Path to Production
V.BTR, V.MTO | 19 hours ago
Read more at http://www.stockhouse.com/news/press-releases/2018/06/18/bonterra-to-acquire-metanor-expanding-strategic-position-in-urban-barry-camp#0uexhESQQIEYXerM.99 http://www.bonterraresources.com/ Metanor Res Inc. (MEAOF & MTO) http://www.metanor.ca/en/press-releases/ http://www.metanor.ca/
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