TSX-V-listed junior New Oroperu Resources has announced a business combination with capital pool company First Light Capital to create Anacortes Mining – a new gold company to be led by former Equinox COO Jim Currie.
Anacortes will focus on exploration and advancement of New Oroperu’s Tres Cruces project, in Peru, in addition to seeking further growth opportunities in the Americas.
Tres Cruces is located near the Lagunas Norte mine, which Barrick Gold sold earlier this year. The project hosts oxide and sulphide resources of 2.47-million ounces at 1.65 g/t gold and inferred resources of 104 000 oz at 1.26 g/t.
Currie, who was most recently COO of Equinox Gold, will be the president and CEO of Anacortes. Steven Botts will be president for Peru. He has more than 40 years of experience in mining and was most recently VP and MD of Tahoe Peru.
Commenting on the transaction, Currie said on Friday that Tres Cruces met the investment criteria for a foundational asset for Anacortes.
“The asset provides an established resource base, significant exploration potential for both the oxides and sulphides and several development opportunities,” he said in a statement.
First Light also completed a C$20-million subscription receipt financing through a brokered private placement of subscription receipts at C$0.40 each.
Under the terms of the transaction, each New Oroperu shareholder would receive 5.815 shares of First Light for each share hold. Based on the share exchange ratio, a total of 162.2-million First Light shares would be issued to New Oroperu shareholders based on a total of 27.9-million shares outstanding, before giving effect to a consolidation, representing total consideration equal to about $76-million.
Upon completion of the transaction, current First Light and New Oroperu shareholders would own 16% and 84%, respectively, of Anacortes. Following the private placement, First Light and New Oroperu shareholders’ holdings would reduce to 13% and 66%, respectively, and private placement investors would own 21%.