MacDonald Mines (MMP.A-A) has signed an agreement with Mill City Gold Mining (MIV-V) to acquire the latter’s 46.5% controlling interest in Golden Hill Mining (GHMC-C).
For each share owned by Mill City, MacDonald will exchange 0.63 share and 0.26 share purchase warrant. A full share purchase warrant is exercisable at 30cents per share for one year.
Under the agreement, which has yet to be approved by regulators, 9.5 million MacDonald shares will be held in escrow, a third of which will be released at the end of each of the next three years.
If approved, the deal will give MacDonald a 100% interest in the Golden Hill copper-gold property in Cuba. Currently, MacDonald and Golden Hill each own a quarter interest, with the remainder held, on a carried basis, by GeoMinera, a Cuban state-owned company.
MacDonald hopes to acquire the remaining shares in Golden Hill by making equivalent offers to the remaining shareholders. A complete takeover would require the release of 19.5 million shares and 8 million share purchase warrants.
Meanwhile, geochemical and geophysical work continues to test for new zones of mineralization at Golden Hill. Starting next month, a 5,000-metre drill program will test promising targets.
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