PERTH (miningweekly.com) – ASX-listed junior Kingston Resources has struck a binding heads of agreement with TSX-V listed WCB Resources to merge by way of a plan of arrangement.
Under the terms of the agreement, each WCB shareholder would receive 4.5 Kingston shares for every WCB common share held, to create a new Australasian-focused gold and lithium development and exploration company.
WCB shareholders will hold about 31% of the merged company, with Kingston shareholders owning the balance.
The merger will combine a joint venture interest in the Misima gold project, in Papua New Guinea, which hosts a 2.3-million-ounce resource, as well as an extensive lithium exploration portfolio in the Northern Territory and the emerging Livingstone gold project in Western Australia.
“The merger of Kingston and WCB creates a strong platform for shareholders to benefit from a substantial value uplift driven by an acceleration in exploration activity at Misima, the emerging Livingstone project and exploration within the group’s extensive lithium landholding,” said Kingston MD Andrew Corbett on Friday.
WCB president and CEO Cameron Switzer said that the merger was an outstanding opportunity for existing shareholders, adding that the attractiveness of a diversified Australasian development and exploration portfolio, and the focus on advancing the Misima gold project, was set to benefit shareholders.
“The portfolio approach provides shareholders with exposure to both gold and lithium optionality moving forward,” Switzer said.
The merger will be subject to Australian and Canadian regulatory and shareholder approvals.