Canadian mining firms Goldsource and Eagle Mountain Gold to merge
Goldsource Mines Inc and Eagle Mountain Gold Corp announced that they had agreed on a friendly merger. Under the terms of the said deal, each of the two companies would hold half of the newly combined firm at closing, according to Creamer Media's Mining Weekly.
The merger deal required both mining firms to launch a private placement funding to raise USD250,000 before December 15. In addition, Goldsource must complete an minimum of USD1.5 million of equity financing effective upon closing, said the report.
The agreement also said both Canada-based firms have to pay a break fee worth USD250,000 should either terminated the deal to accept another proposal, the report stated, the report explained.
The newly combined entity would operate under Goldsource Mines. Three Goldsource directors, one independent Eagle Mountain nominee, and one Eagle Mountain director would make up the new board, the report said.
The merger of the two firms was expected to be finalized by January 31, Creamer Media's Mining Weekly said in its report.