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Mariana Resources (LON:MARL) has formally signed the plan of arrangement to acquire Aegean Metals Group (CVE:AGN), on the terms previously announced in September.
The terms of 1.902 Mariana shares per Aegean share value each share at 6.25 Canadian cents, in what Mariana’s chief executive officer (CEO), Glen Parsons, called “another transformational move for Mariana”.
Aegean has two advanced gold-copper exploration projects in the Tethyan porphyry-epithermal belt of Turkey, both of which are currently optioned out to joint venture (JV) partners, and two wholly-owned exploration properties in northern Chile’s Region III.
Mariana believes the agreed bid is a good deal, given the valuation of Aegean, which is around C$2.59mln, and the high prospectivity of the Turkish assets, Ergama and Hot Maden, while the Canadian company’s Chilean portfolio neatly complements Mariana’s own project pipeline in Peru, Chile and Argentina.
When the takeover becomes effecting, Dr Eric Roth, president and chief executive officer of Aegean, will become chief operating officer of Mariana and an executive director of the AIM-listed firm.
“Adding Aegean’s four gold‐copper‐silver projects in Chile and Turkey will further bolster our existing South American portfolio and expose Mariana shareholders to fully funded advanced exploration in the Tethyan porphyry‐epithermal belt of Turkey,” Mariana ‘s CEO, Glen Parsons, said.
“Following our recent US$6 million funding option with Bergen we are well funded to advance exploration on these new projects,” he added.
Parsons said the acquisition of Aegean will bring a number of new key shareholders to Mariana, including a Chilean-based junior investment fund, major diversified resources company Teck Resources (Aegean’s JV partner on Ergama) and Vancouver-based David Elliott (Haywood Securities).
Broker RF Ambrian calculated that Aegean shareholders will end up with about 15% of Mariana after the merger takes place, with the terms valuing the Canadian company at about US$2.2mln.