An agreement with MK Gold (NASDAQ) and Min America gives Arlo Resources (VSE) a host of new properties, a large cash infusion and a change in control.
Arlo plans to issue 8 million units at 80 cents each, with a unit consisting of one share and half a warrant. MK Gold has agreed to buy 5 million units while Min America, a Panamanian company, will buy 1.2 million. Each full warrant allows the holder to buy an additional share at $1.50 for two years.
Daniel Kunz, president of MK Gold, will become chairman of Arlo while Gerald Sneddon, executive vice-president of MK Gold, becomes an Arlo director. Arlo also gains two directors from Min America, including Richard Fifer who becomes president.
Min America and MK Gold will enter a joint voting trust agreement for their share positions.
As part of the change in control and financing, Arlo has been granted options on five properties in Panama and one in Mongolia.
The Vancouver-based company can earn a half interest in each of the Panamanian properties, which include three from Min America, one from Adrian Resources (VSE) and one from CEMSA of Panama.
Four of the Panamanian properties are near the giant Cerro Colorado copper deposit and display potential for bulk-tonnage copper-gold discoveries. The Mongolian property, known as Boroo, is a gold project in which Arlo can earn a 49% interest, currently held by MK Gold. The concession comprises 4,950 sq. km and contains several gold deposits which require further investigation.
Arlo’s five new Panamanian projects, when combined with its existing option agreements on the Santa Lucia and Oro del Norte concessions in the Petaquilla district, are expected to result in one of the most active exploration programs in the country.
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