Eros Resources to merge with Canadian mining rivals
Oct 1 (Reuters) -Canadian small-scale gold miner Eros Resources ERC.V would merge with rivals MAS Gold MAS.V and Rockridge Resources ROCK.V to develop copper and gold projects in the province of Saskatchewan, the companies said on Tuesday.
The Canadian province, home to copper, potash and uranium mines, is known for its mining prowess and contains several unexplored metal deposits.
Spot gold prices have risen about 29% so far this year on expectations of interest rate cuts and demand for safe haven amid rising geopolitical tensions, while copper has gained on long-term demand for the metal.
Under the deal terms, Eros would acquire MAS Gold and Rockridge shares that it does not own already by issuing 0.375 Eros common shares to Rockridge shareholders and 0.25 Eros shares to MAS Gold shareholders.
After the transaction closes, Eros shareholders would own about 42.37% of the combined company, while MAS Gold and Rockridge shareholders would own 37.33% and 20.3%, respectively.
"The portfolio of the combined company is expected to provide shareholders with exposure to approximately 77,890 hectares of mineral claims, offering the potential for new discoveries and potentially attracting larger strategic partners," the companies said in a statement.
Eros had a market capitalization of C$4.4 million ($3.26 million) as of Sept. 30, according to LSEG data.
($1 = 1.3500 Canadian dollars)
Reporting by Sourasis Bose in Bengaluru; Editing by Shilpi Majumdar
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
