Cygnus Metals (ASX:CY5) introduced plans to merge with Doré Copper Mining (TSXV:DCMC,OTCQB:DRCMF), saying it’ll purchase 100% of Doré’s issued and excellent widespread shares by way of a definitive association.
In an October 15 press launch, Cygnus mentioned the deal will create a Québec-focused copper and lithium firm, with Doré’s Chibougamau copper-gold undertaking and Cygnus’ James Bay lithium initiatives as its essential belongings.
The brand new entity sees the potential for useful resource progress, in addition to brownfield and greenfield discoveries on the properties. Chibougamau has a useful resource of 10.8 million tonnes at 3.5 p.c copper equal, whereas the James Bay-based Pontax undertaking has a useful resource of 10.1 million tonnes at 1.04 p.c lithium oxide.
The Chibougamau undertaking has the one processing facility inside a 250 kilometre radius. The plan is to implement a “hub-and-spoke” technique the place this facility will likely be used to course of materials from numerous close by deposits.
“The Doré group is delighted on the considered working with the Cygnus group to create a crucial metals firm and to maximise the worth of what we all know is an impressive asset at Chibougamau,” mentioned Doré President and CEO Ernest Mast.
“This merger will present the funding, further experience and the technique to hopefully generate superior shareholder returns via brownfields exploration at Chibougamau,” he added.
Cygnus mentioned it intends to boost AU$11 million via a placement with two tranches. It’ll use the funds for useful resource and manufacturing development at Chibougamau, and growth of the lithium exploration pipeline at James Bay.
“We intend to plan and implement an aggressive exploration programme, utilising extremely skilled geologists and the most recent expertise, with the purpose of driving robust useful resource progress at a time when the world desperately needs extra copper from tier-one places,” defined Cygnus Government Chair David Southam.
The transaction is predicted to shut on the finish of December. It’s topic to numerous circumstances, together with the receipt of conditional approval from the TSXV for the itemizing of Cygnus’ shares. As soon as full, Cygnus shareholders will personal 55 p.c of the merged group, whereas Doré shareholders will maintain 45 p.c.
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Securities Disclosure: I, Gabrielle de la Cruz, maintain no direct funding curiosity in any firm talked about on this article.
