Canadian company Bullet Exploration (TSX-V:AMMO) has pulled the trigger on a definitive amalgamation agreement for Gold79 Mines (TSX-V:AUU) to acquire the company.
The transaction is by way of a three-cornered amalgamation whereby Gold79, through a wholly owned subsidiary, will amalgamate with Bullet forming Amalco, which will become a subsidiary of Gold79. Bullet will then be delisted from the TSX Venture Exchange.
Bullet says the transaction will create a well-funded gold exploration company focused on the southwest US.
The combined entity will focus on delivering a maiden resource at Gold79’s Gold Chain project in Arizona; exploring Bullet’s Jefferson North Gold-Silver project in Nevada to define its scale potential; and get work with Kinross to get the maiden drill program at Jefferson underway.
Bullet President and CEO Ehsan Agahi says the merger is a transformative step for the company, offering immediate exposure to a diverse portfolio of gold projects.
“By joining forces with Gold79, we strengthen our ability to advance these assets and unlock their full value. The combined expertise and resources should accelerate our growth trajectory and create substantial value for all stakeholders,” Agahi says.
Subject to shareholder approval, under the terms of the deal Bullet shareholders will receive one common share of Gold79 for every three common shares of Bullet. Existing shareholders of Gold79 and Bullet will hold approximately 54% and 46%, respectively on a fully diluted in-the-money basis.
As part of the transaction, Gold79 plans to raise C$4 million.
Gold79 President and CEO Derek Macpherson says the tie-up is a unique opportunity to consolidate exploration companies in the southwest US.
“The combined entity is going to have multiple projects at various stages of exploration, be well-funded and have improved access to capital. Importantly for shareholders, the planned equity financing should provide the combined entity with the capital necessary to deliver a maiden resource at Gold Chain,” Macpherson says.
Bullet Exploration is a TSX Venture-listed company focused on gold and silver projects in the US. The flagship Jefferson North Gold-Silver project in Nevada spans 1,068 hectares and 132 claims, offering significant exploration potential.
Gold79 Mines is also focused on building ounces in the southwest US.
Images: Bullet Expploration
