Combined company will be the largest gold producer in Colombia with a large portfolio of development projects, says Medoro ceo Serafino Iacono.
Ending weeks of speculation, Gran Colombia Gold Corp. (TSX: T.GCM, Stock Forum) and Medoro Resources Ltd. (TSX: T.MRS, Stock Forum) are combining their operations to create a Colombian-focused gold production and exploration company.
The merged entity is expected to benefit from production at the existing Gran Colombian gold mine (formerly known as Frontino) and development of the Marmato gold project which are both located in the mid-Cauca gold belt in the vicinity of Medellin.
Together the combined companies expect to be producing 630,000 ounces by 2016, up from a forecast 109,000 ounces in 2011.
“What we will create, besides the largest gold producer in Colombia, is also a vast portfolio of near-production and development of new resources in the country,’’ said Serafino Iacono, the interim chief executive officer of Medoro and Chairman of Gran Colombia.
Under the terms of the merger, each Medoro shareholder will receive 1.20 common shares of Gran Colombia, plus 0.50 of a Gran Colombia share purchase warrant for each of their Medoro shares.
Each warrant will entitle the holder to acquire one common share of Gran Colombia at an exercise price of $2.60 per Gran Colombia share.
The warrants expire on August 24, 2015.
Upon completion of the merger, existing Gran Colombian and Medoro shareholders will each own approximately 50% of the combined company.
“This was probably the worst kept secret around,’’ said Thom Calandra, author of the Stockhouse-featured Ticker Trax column.
He said the air was thick with merger chatter during the recent Prospectors and Developers Association of Canada Convention in Toronto.
Ending weeks of speculation, Gran Colombia Gold Corp. (TSX: T.GCM, Stock Forum) and Medoro Resources Ltd. (TSX: T.MRS, Stock Forum) are combining their operations to create a Colombian-focused gold production and exploration company.
The merged entity is expected to benefit from production at the existing Gran Colombian gold mine (formerly known as Frontino) and development of the Marmato gold project which are both located in the mid-Cauca gold belt in the vicinity of Medellin.
Together the combined companies expect to be producing 630,000 ounces by 2016, up from a forecast 109,000 ounces in 2011.
“What we will create, besides the largest gold producer in Colombia, is also a vast portfolio of near-production and development of new resources in the country,’’ said Serafino Iacono, the interim chief executive officer of Medoro and Chairman of Gran Colombia.
Under the terms of the merger, each Medoro shareholder will receive 1.20 common shares of Gran Colombia, plus 0.50 of a Gran Colombia share purchase warrant for each of their Medoro shares.
Each warrant will entitle the holder to acquire one common share of Gran Colombia at an exercise price of $2.60 per Gran Colombia share.
The warrants expire on August 24, 2015.
Upon completion of the merger, existing Gran Colombian and Medoro shareholders will each own approximately 50% of the combined company.
“This was probably the worst kept secret around,’’ said Thom Calandra, author of the Stockhouse-featured Ticker Trax column.
He said the air was thick with merger chatter during the recent Prospectors and Developers Association of Canada Convention in Toronto.
Posts
No comments:
Post a Comment
Thanks for your visit, hope you enjoy the content, we expect to see you again soon.