Tianshan and Corvette Resources to merge
Tianshan Goldfields Limited (TGF) and Corvette Resources Limited (COV) have agreed to merge under a scheme of arrangement. The two junior gold miners said that following the merge they would have a market capitalisation of around $60 million, with cash reserves of $30 million.
The boards of the two companies said they believed that the merged companies have a better prospect for growth than either of the standalone companies.
”The Tianshan and Corvette boards believe the combined corporate, management and technical strengths of both companies will result in increased financial and support capabilities, providing a sound platform for on-going exploration and future development activities,” Tianshan Goldfields said in a statement released to the ASX Tuesday morning.
As well as stronger cash position the combined company would have access to the highly prospective Plumridge Gold Project in Western Australia.
”The Plumridge Project is located within the Tropicana Gold Belt, a new gold province that is shaping up to host world class gold deposits,” Tianshan said.
Under the Scheme, Tianshan would acquire all of the issued shares in Corvette in exchange for the issue of shares in Tianshan.
The consideration for the scheme would be two Tianshan shares for every one Corvette share held on the implementation date of the scheme.
At 1018 AEDT, Tianshan shares were halted at 10c and Corvette at 25c.
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