Satori Resources Inc. (TSX-V: BUD) has completed its acquisition of Rob McEwen’s privately owned exploration company, Apollo Exploration.
The Toronto-based miner announced the transaction’s completion on Wednesday and will be changing the company’s name to Canadian Gold Corp. once a receipt of final approval for the deal has been obtained from the TSX Venture Exchange.
McEwen, Chairman and Chief Owner of McEwen Mining Inc. (TSX: MUX) (NYSE: MUX), will own 37.6 per cent of Canadian Gold.
McEwen received 60 million common shares of Satori in exchange for his company Apollo, worth approximately $15.6 million. He has worked as a CEO of several gold mining companies since 1990. Currently, he owns 17 per cent of McEwen Mining and 15 per cent of McEwen Copper.
Satori’s flagship project is the Tartan Lake Gold Mine in Flin Flon Manitoba. The company has no debt, about $2 million in cash and now holds exploration properties in Quebec and Ontario near major projects owned by mining companies like Agnico Eagle Mines Limited (TSX: AEM) (NYSE: AEM) and Barrick Gold (NYSE: GOLD).
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The Tartan mine has an estimated indicated resource of 240,000 ounces averaging at 6.3 g/t Au.
Upon obtaining the receipt of approval from the TSX Venture Exchange, Canadian Gold Corp. will trade under the ticker symbol CGC.
McEwen Mining’s copper subsidiary has acquired substantial investments from major automotive companies and others for its Los Azules project in Argentina.
In February, the leading vehicle maker Stellantis (NYSE: STLA) (Euronext Milan: STLAM) (Euronext Paris: STLAP) invested US$155 million in the project to help secure a reliable supply of the metal for its vehicles and the mining giant Rio Tinto Ltd. (ASX: RIO) (LON: RIO) also invested $30 million in the project.
Satori’s shares dropped by 1.92 per cent Wednesday to $0.26 on the TSX Venture Exchange.
McEwen’s shares rose by 2.23 per cent to $11.48 on the Toronto Stock Exchange.
rowan@mugglehead.com
