Abcourt Mines has signed a deal to acquire mining exploration and development firm Pershimex Resources to create a larger and more diversified emerging gold producer and explorer in Québec, Canada.
Under the agreed terms, Pershimex shareholders will receive 0.0816 of an Abcourt share, upon consolidation, for each share held. This implies a consideration of C$0.0289 for each Pershimex share.
Abcourt plans to complete a share consolidation on the basis of seven for one Abcourt common shares, thus reducing the number of outstanding Abcourt shares from 348,814,130 to 49,830,590.
Abcourt also plans to change its name to Infinitas Gold/Infinitas Or, upon completion of the deal.
Abcourt president and CEO Pascal Hamelin said: “We have an opportunity to become a large landholder of gold properties, many gold exploration projects and an advanced development gold project with the Sleeping Giant Mine and Mill. These are the right ingredients to become a significant gold company in the Abitibi camp.”
The combined company will own 510km² of strategic landholdings in major gold districts in central Québec, and two underground gold mines that are currently placed on care and maintenance.
It will also hold an operating 750tpd mill at the Sleeping Giant mine site, 14 early-to-advanced stage gold exploration projects, a feasibility stage zinc-silver project and a nearby satellite deposit.
Pershimex president and CEO Robert Gagnon said: “With this major transaction to come, our company will move to another level, from a modest explorer we will soon become a gold producer established in Abitibi with two gold mines, an ore processing plant and one of the largest claim portfolios in Abitibi.”
The transaction is supported by some large Pershimex shareholders that jointly represent 21.52% of Pershimex shares.