- Core Gold and Titan shareholders would each hold about 48.5% and 38.9% of the combined firm
- It would create an Latin America focused gold producer, developer, and explorer with a massive gold portfolio in Peru and Ecuador
Titan Minerals Limited and Core Gold Inc. have reportedly declared that the firms recently signed a binding arrangement deal which would enable Titan to buy all the issued and outstanding common shares of Core Gold by way of a share exchange.
As per trusted sources, the merger would form a new Latin America focused gold entity that would have a robust portfolio of development, exploration, and production assets in both the powerful mining jurisdiction of Peru and the emerging mining jurisdiction of Ecuador.
Reportedly, the merger would ensure that each shareholder of Core Gold receives 20 fully-paid Titan’s ordinary shares in pre-consolidation for each common share of Core Gold. Following the conclusion of the merger agreement, shareholders of Core Gold and Titan would each hold about 48.5% and 38.9% in the proposed combined firm.
The merger has been reportedly executed through a Canadian court-approved plan of arrangement with Titan slated to continue functioning as the group’s parent firm.
According to a press release by Core Gold, the merger has received unanimous support by the Board of Directors of both the companies. The Chief Executive Officer and Managing Director of Titan Minerals, Laurence Marsland, would lead the company’s operating teams with significant experience and proven management in the Latin American region.
Reportedly, an equity financing of about A$20 million would be completed by Titan Minerals at the conclusion of merger. The company has committed to provide a binding term sheet for an additional financing of around USD 10 million after the merger.
The proposed Board of Directors would include three nominees from Core Gold (Mark Bailey, Javier Reyes, and Gregg Sedun) and three nominees from Titan (Laurence Marsland, Matthew Carr, and Nicholas Rowley).