With both companies’ boards signing a final merger agreement,
Under the merger plan, both companies would move their incorporation to the Yukon Territory, and then apply to a Yukon court for approval of the merger. The merger would also require regulatory approval.
The two companies are holding annual meetings simultaneously — Queenstake in Vancouver, and Santa Cruz in Toronto — to consider the merger proposal. If shareholders approve the change of domicile and the merger, Santa Cruz shareholders will receive 0.108 share in the merged company for each Santa Cruz share, whereas Queenstake shareholders will receive one new share for every two Queenstake. Queenstake shareholders will hold about 65% of the new company.
Santa Cruz’s principal asset is the Magistral gold project in Sinaloa state, Mexico, which is now at the feasibility stage. The companies are looking at possible production from Magistral for “near-term cash flow.” Queenstake has exploration projects in Peru, Chile and Mexico
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