SolGold ( OTCPK:SLGGF ) said Friday it agreed to buy the entire issued share capital of Cornerstone Capital Resources in a friendly merger that values Cornerstone at £96.7M ($107.9M).
Under the deal terms, Cornerstone shares will be exchanged for Solgold ( OTCPK:SLGGF ) shares on the basis of 15 SolGold shares for every Cornerstone share.
SolGold ( OTCPK:SLGGF ) said the merger will consolidate ownership of the Cascabel copper-gold project in Ecuador in which it holds an 85% stake, along with a strong portfolio of other projects.
The miner also said it is undertaking a strategic review which may include evaluating financing alternatives and a spinout of assets other than the Cascabel project.
SolGold ( OTCPK:SLGGF ) recently reported a full-year $1.7M operating loss after tax .
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SolGold seals merger deal with Cornerstone Capital