Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed Coventry Resources has announced plans to acquire Vista Minerals, with the combined entity to be renamed Polaris Minerals.
Vista Minerals holds the Stellar copper/gold project, in Alaska, which is contiguous with Coventry’s own Caribou Dome project, with the company saying on Wednesday that the two projects combined would deliver an exciting high-grade copper and copper/gold portfolio and a unique chance to build a meaningful resource house at an opportune time in the market.
The two projects were estimated to host a combined 129 500 t of copper and 217 000 oz of gold.
Coventry will issue more than 459.9-million of its own shares in exchange for full ownership of Vista Minerals.
Meanwhile, Coventry on Wednesday also reported that the combined entity was in advanced discussions to raise A$10-million, which would fund the first two years of resource drilling and the start of feasibility studies at both project areas.
The drilling programme would be used to delineate a mineable resource well in excess of the current and historic resources, and to initiate a feasibility study on the combined projects.
Following the capital raising, and a concurrent consolidation, the combined company would have a tight capital structure with under 300-million shares on issue, and sufficient funding for the next two years.
Coventry shareholders were expected to vote on the proposed acquisition, as well as the capital raising and share consolidation, at a meeting to be held at the end of June.