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Probe Metals and Adventure Gold announce merger

Probe Metals and Adventure Gold Inc. have announced they will be merging the two companies. Probe Metals is a gold exploration company with property in the Timmins area. It was formed last year following the sale of Probe Mines to Goldcorp in March.
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Probe Metals was formed after the sale of Probe Mines to Goldcorp last March.

Probe Metals and Adventure Gold Inc. have announced they will be merging the two companies.

Probe Metals is a gold exploration company with property in the Timmins area. It was formed last year following the sale of Probe Mines to Goldcorp in March. Goldcorp currently owns a 17.7 per cent stake in Probe.

Adventure, meanwhile, is focused on exploration and development in the Abitbi Greenstone Belt. Its main project is the Val-d’Or East project, which has a resource report of 770,000 ounces of gold at 2.6 g/t Au in inferred resources, calculated at a 1.0 g/t cutoff above 350m depth and 1.5 g/t cutoff below.

Under the agreement, Adventure shareholders will receive 0.39 cents of a Probe share for each Adventure share.

Probe has currently 34,914,205 common shares issued and outstanding. Upon completion of the transaction, Probe will have approximately 66,191,220 shares issued and outstanding, and existing Probe and Adventure shareholders will own approximately 53 per cent and 47 per cent of the combined company, respectively.

In conjunction with the merger, Probe Metals announced it would issue Goldcorp 4,400,000 shares at 0.66 cents each, raising a total of $2,904,000. The shares represent roughly 15 per cent of Probe Metals’ issued and outstanding shares.

The deal is conditional on the closing of the merger between Probe and Adventure.

David Palmer, president and CEO of Probe, said the company has spent more than a year reviewing more than 400 projects before selecting Adventure as one that adds value to shareholders.

"The combination of Adventure's prospective project portfolio, Probe's strong balance sheet and the combined company's technical and corporate experience will allow us to deliver value through focused and cost-effective exploration in two of the friendliest, safest and most productive mining jurisdictions in the world," he said in a release.