JOHANNESBURG (miningweekly.com) – Canadian mineral resource company Oban Mining has entered into a definitive arrangement agreement with TSX-listed Eagle Hill Exploration, Ryan Gold and Corona Gold, to acquire common shares of each company.

Under the arrangement, each holder of Eagle Hill shares would receive ten common Oban shares and five warrants entitling the holder to acquire one Oban share at $0.15 apiece, for a period of three years, in exchange for each Eagle Hill share held.

Each holder of Ryan shares would receive 1.880 Oban shares in exchange for each Ryan share held and each holder of Corona shares would receive 7.671 Oban shares in exchange for each Corona share held.

The precious metals and base metals explorer and developer also signed a definitive arrangement agreement with gold miner Temex Resources, through which it would acquire all of the common shares of Temex.

Each holder of Temex shares would receive 0.780 Oban shares in exchange for each Temex share held.

The arrangements were expected to close in August.

LOAN AGREEMENTS
Oban and Eagle Hill also entered into a loan agreement, where Oban would lend Eagle Hill $1-million to be used for general corporate purposes pending completion of the three-party arrangement.

The loan bore no interest and was due and payable either on completion of the three-party arrangement, 120 days following the date on which the three-party arrangement agreement was terminated or when demanded by Oban if Eagle Hill should default.

Eagle Hill proposed to advance a portion of the proceeds of the loan to holders of Eagle Hill stock options for directors, officers, employees and consultants to exercise their options.

Eagle Hill could lend up to $656 000 to holders of options who were directors and officers of Eagle Hill, and up to $44 000 to holders of options who were not insiders of Eagle Hill.