Vancouver’s Newrange Gold Corp. (TSX-V: NRG) (OTC: NRGOF) (Frankfurt: X6C) has inked an agreement to acquire the Australian miner Mithril Resources Limited, thereby adding a Mexican gold-silver mine and four Australian properties to its Portfolio.
The companies announced the deal on Thursday, which is worth approximately $11 million. Newrange believes that acquiring the Copalquin gold-silver project in Mexico’s Durango State will add significant value to the company.
Through the transaction, Mithril shareholders will be receiving approximately 18 Newrange shares for every 1,000 Mithril shares they own.
Mithril paused trading on the Australian Securities Exchange prior to the acquisition announcement and the deal is classified as a reverse takeover by the TSX Venture Exchange.
A maiden mineral resource estimate for the Copalquin project indicated that the mine would produce 373,000 ounces of gold and 10,953,000 ounces of silver.
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Newrange currently owns two gold mines in northern Ontario spanning approximately 11,000 acres.
The Billy Hills Zinc project, Mithril’s most substantial Australian asset, consists of three exploration licenses spanning 400 square kilometres.
“Not only does the Copalquin Gold-Silver Project bring tremendous value and upside potential but the combined experience of the new management team and board will provide a strong foundation for future growth in the Americas,” said Newrange’s President and CEO Robert Archer.
“The new Americas-focused exploration and development company resulting from the merger with TSX-V listed Newrange creates a highly experienced and focused board and management who are well positioned to take advantage of the considerable growth opportunities at the Copalquin mining district and the two Canadian Red Lake District properties,” said Mithril’s CEO John Skeet.
Newrange currently has a market capitalization of $15.92 million on the TSX Venture Exchange and $2.9 million on the OTC markets where the company’s shares are currently trading for $0.09 and $0.02 respectively.
rowan@mugglehead.com
