PERTH (miningweekly.com) – ASX-listed Mayur Resources on Friday said that it remained on track for the acquisition of two privately owned gold companies with assets in Papua New Guinea (PNG), and the spin-out of its PNG assets.

Mayur in September announced plans to spin out and list its PNG gold and copper assets into a TSX-V-listed entity, and the acquisition of privately-held Ballygowan and Pacific Arc Aurum, which hold highly prospective gold assets in PNG, including the Gameta and Wapolu projects on the Fergusson Islands.

In addition, Mayur has also entered into a definitive agreement with XIB Capital Corp to vend its consolidated copper gold portfolio into XIB through a reverse takeover transaction, with Mayur to install a new board of directors and management.

Mayur on Friday said that a number of conditions precedent for a reverse takeover transaction had now been satisfied, with the remaining conditions precedent well advanced.

Definitive agreements have been signed with the private companies and XIB.

Meanwhile, Mayur noted that with the 2020 US Presidential elections now completed, the planned C$5-million capital raise by the spin-off was expected to be initiated in the week starting November 16. A syndicate of leading Canadian and US investment banks had been appointed.

“The level of demand from investors to date has been substantial and we expect the next phase of the capital raise, once initiated, to close in a timely manner,” said Mayur MD Paul Mulder.

“Mayur has successfully created a portfolio of assets that provide shareholders with legitimate options for value creation. The spin-out of the copper and gold assets is the first of potentially many other realization and disaggregation strategies the company is considering, thereby validating the Mayur value creation model.”

Mayur will initially remain the largest shareholder of the new vehicle, and will complete an in-specie distribution of its shares to current shareholders, in line with the TSX-V and other regulatory requirements.