Atlantic inks merger with Canada's Spur
PERTH (miningweekly.com) – Junior Atlantic Gold has formalised its merger with TSX-listed Spur Ventures, after both parties completed due diligence studies.
The merger proposal, which was announced in April, would see Spur acquire all the ordinary shares of Atlantic. Atlantic shareholders would receive 0.05564 of a common share in Spur and 0.02782 of a share purchase warrant in Spur for each Atlantic share held.
Each of the share purchase warrants would be exercisable for a period of four years from the closing date of the transaction, at an exercise price of C$0.60 each.
Atlantic told shareholders on Friday that based on the current timetable, the merger would be implemented by mid-August.
Atlantic was currently focused on the development of its Touquoy project, in Nova Scotia. The Touquoy project would require a capital investment of about $142-million to produce 84 000 oz/y of gold, over a five-year mine life.
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