The share price of Aim-listed mining company Patagonia Gold jumped 15% on Friday to 61.55p a share, following news that it agreed to a takeover by Canadian firm Hunt Mining.
Under the reverse takeover offer, Patagonia shareholders will receive about 10.76 common shares in the capital of the resulting issuer in exchange for each ordinary share of Patagonia. There are currently 63 588 798 common shares of Hunt issued and outstanding and 23 634 749 Patagonia shares issued and outstanding. It is expected that on completion of the scheme, the resulting issuer will have about 317 943 990 common shares issued and outstanding, of which 80% will be held by the Patagonia shareholders.
Upon the closing, Hunt will become a tier-two mining issuer listed on the TSX-V and will be renamed Patagonia Gold.
As part of the reverse takeover process, Patagonia has commissioned the updating of the independent National Instrument 43-101-compliant technical reports for Calcatreu and Cap-Oeste projects, in Argentina.
At Calcatreu, the indicated mineral resources decreased by 21 000 contained gold ounces and the inferred mineral resources increased by 5 000 contained gold ounces. Similarly, indicated silver resources decreased by 465 000 contained ounces, while inferred mineral resources decreased by 39 000 contained ounces. The changes from the previous estimate were due to a revised interpretation of the existing data.
At Cap-Oeste, the measured and indicated mineral resources decreased by 176 000 contained gold ounces and 2.82-million contained silver ounces primarily as a result of mine production depletion of the mineral resources, along with minor adjustments to the interpretation of the gold/silver mineralisation and 2018 resource model.