Toronto’s Kerr Mines and Winnipeg’s San Gold have reached a merger deal to combine their gold properties in the Kirkland Lake area and in Manitoba.
“Combining the Rice Lake (in Manitoba) and Copperstone (in Arizona) assets is an important step in creating the next North American mid-tier gold producer,” said Kerr Mines’ chairman Stephen McIntyre in a statement. Once this transaction has been completed, the combined entity will have a much stronger market presence than either company could achieve on its own.”
“I am very pleased with the deal we have structured,” said San Gold president Gestur Kristjansson. “We’ve fixed a lot of problems over the past few months at Rice Lake. We’re looking forward to continuing improvement as well as leveraging the entire team at the Copperstone opportunity and at other projects.”
Under the terms of the agreement between San Gold and Kerr Mines, each Kerr Mines shareholder will be entitled to an exchange ratio of three common shares of San Gold for every one common share of Kerr Mines held by such Kerr Mines shareholder.
Currently, San Gold and Kerr Mines have approximately 373 million and 95 million shares outstanding, respectively. Closing share prices on Aug. 18 were $0.125 for San Gold Shares and $0.345 for Kerr Mines Shares.