12th May 2014 10:07
LONDON (Alliance News) - AIM-listed Orosur Mining Inc Monday said it has a deal to acquire Waymar Resources Ltd for about 18.5 million Orosur shares, or about GBP2.1 million, a deal that will create a company focused on exploring and mining for gold in South America.
The combined company would have a producing mine and exploration assets in Uruguay and exploration and development projects in established mining jurisdictions in Chile and Colombia. Waymar?s main asset is the Anzá project in Colombia.
Orosur said it is paying 0.375 shares for each Waymar share. It will also exchange Waymar warrants. After the deal is completed, Orosur shareholders will hold about 80.9% of the combined company and Waymar holders the rest.
Orosur is being advised by Cantor Fitzgerald Europe and Waymar is being advised by PowerOne Capital Markets Ltd.
?The acquisition of Waymar, with complementary assets to Orosur, will represent an excellent value opportunity for the shareholders of both companies where the combination is stronger than the simple addition of the parts," Orosur Chief Executive Ignacio Salazar said in a statement.
"The Anzá gold exploration project is an attractive high grade asset with significant upside which, set alongside our San Gregorio Mine and Pantanillo and Anillo projects is a major step towards the creation of a strong and diversified gold company with a well balanced mix of existing production, exciting exploration and advanced development projects in South America," he added.
The deal is subject to regulatory approval and must be approved by at least two-thirds of Waymar shareholders at a special meeting. The sides have signed break fees of USD300,000 to Orosur and USD225,000 to Waymar if the deal doesn't go through due to some specified reasons.
Orosur Mining shares were down 4.7% at 11.20 pence Monday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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