TORONTO (miningweekly.com) – TSX-V-listed Mexico-focused exploration and development firms Kootenay Silver and Northair Silver on Monday signed a definitive arrangement agreement that would position Kootenay as a dominant land-holder in the country.
With project consolidation also one of the stated objectives of the combined company, Kootenay’s portfolio of projects will comprise its Promontorio and La Negra projects and Northair's La Cigarra project.
The combined company would have exposure to a series of grass-roots pipeline exploration projects, royalty interests and joint ventures, as well as a strong balance sheet providing the combined company with a stable platform for future consolidation in the sector.
Under terms of the agreement, Northair shareholders would receive 0.35 of a Kootenay common share, as well as 0.15 of a warrant to buy a Kootenay share at a strike price of $0.55 each, for a period of five years from closing.
Upon closing the deal, Northair would become a wholly owned subsidiary of Kootenay and former shareholders of Northair would hold about 40% of Kootenay shares on an outstanding shares basis.
Edited by: Creamer Media Reporter
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