Crown Resource, Gold Texas Resources (VSE), and Gold Capital Corp. recently announced the execution of a definitive agreement to combine the ownership of the three companies into a new corporation, Crown Resources Corporation, to be headquartered in Denver. The new company plans to be listed on the NASDAQ system, and on the Toronto and Vancouver exchanges.
The new company will have 22 properties in five western states and one Canadian province. The properties include a 30% interest in the Kettle River Gold Project in northeast Washington currently under development by Echo Bay Mines (TSE) of Alberta.
Under the agreement, Crown Resources Corporation will issue approximately 12 million shares of stock (assuming all outstanding options and warrants issued by the combining companies are exercised) to the current holders of stock in the combining companies.
The shareholders of Crown Resource, on a fully diluted basis, will receive 0.68 shares of the new company’s stock in exchange for each of the 10.3 million shares of Crown stock outstanding. Likewise, Gold Texas shareholders will receive 1.43 shares for each of the 3.4 million Gold Texas shares and Gold Capital shareholders will receive 0.18 shares for each of the 9.1 million Gold Capital share outstanding.
Be the first to comment on "A new corporation for Crown Resources"