Platauro Metals Corp. (CVE: PURO) has completed its acquisition of Alcon Silver Corp., creating a combined precious metals exploration company with projects focused on gold and silver in Mexico.
Originally announced on Monday, the transaction also follows a corporate name change, share consolidation and a CAD$2.3 million financing to support exploration and corporate activities.
The companies completed the arrangement under British Columbia’s Business Corporations Act. Platauro issued 40,797,830 common shares to Alcon shareholders as payment for the acquisition.
Alcon shareholders received one post-consolidation Platauro share for each Alcon share they owned. Following the transaction and the conversion of subscription receipts, former Alcon investors own about 53 per cent of Platauro’s outstanding shares on a non-diluted basis.
Chief executive Jack Campbell said the acquisition transforms Platauro into a more diversified precious metals explorer with a broader growth platform. He said the combination brings together the Las Minas gold project and the Princesa silver project, giving the company a portfolio built around established mineral resources and future expansion opportunities.
Campbell also said the combined company benefits from an experienced management team and a shareholder base aligned with its long-term objectives. He added that management believes the new structure positions Platauro to create value for investors.
Before completing the transaction, the company consolidated its common shares on a 1.6667-for-one basis. Additionally, it changed its corporate name from Mexican Gold Mining Corp. to Platauro Metals Corp.
Trading under the new name and ticker symbol PURO began on July 20. The company also received a new CUSIP number as part of the corporate changes.
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Company will use proceeds to advance properties in Mexico
Meanwhile, Platauro completed a previously announced non-brokered private placement that raised CAD$2.299 million. The financing included 11,495,000 subscription receipts priced at CAD$0.20 each.
Each subscription receipt automatically converted into one unit after the acquisition closed and escrow conditions were satisfied. Furthermore, each unit includes one common share and one-half of one common share purchase warrant.
Each whole warrant allows investors to buy one additional common share for CAD$0.30 during the next 30 months. However, Canadian securities laws require all securities issued through the financing to remain subject to a four-month-and-one-day hold period.
Platauro said it will use the proceeds to advance exploration at the Princesa project and the Rowdy claim within the Tatatila property. In addition, the company will use part of the funding to cover legal costs related to the Las Minas claims dispute and provide working capital.
The transaction also brought changes to the company’s board of directors. John Larson and Bruce Winfield, who previously served as directors of Alcon, joined Platauro’s board.
Ashley O’Neill stepped down from the board as part of the arrangement. Subsequently, Alcon’s directors and officers resigned from their positions following completion of the acquisition.
Platauro said it plans to apply for Alcon to stop being a reporting issuer under Canadian securities laws. Robert S. Tyson, Alcon’s former president and chief executive officer, also joined Platauro as an advisor.
Further, Alcon completed the conversion of all outstanding unsecured convertible debentures before the arrangement closed. The debentures converted into 560,000 Alcon shares at CAD$0.25 per share.
No convertible debentures remain outstanding after the conversion. Additionally, completing that step simplified Alcon’s capital structure before Platauro finalized the acquisition.
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