Ascendant Copper (ACX-T) and St. Genevieve Resources (SGV) managed to hammer out a deal whereby Ascendant will up its all share offer by 6 million shares to make up for their recent decline.
News that two concessions at its Junin copper and molybdenum project in Ecuador had been nullified by the government couldn’t have come at a worse time for the Colorado-based Ascendant.
The company was in the midst of making a 30 million share takeover bid for SGV and had to watch as the value of those shares dropped 29% to 15 on the day news of the nullification reached the market in mid-January.
Ascendant is appealing the concession cancellation which was made by a Regional Director of Mining to the National Mining Director. The company claims there were “irregularities” around the cancellation “that could serve to disrupt the entire mining industry in Ecuador if upheld.”
The uncertain circumstances surrounding the claims and the consequential uncertain value of Ascendant share’s led to the postponement of the special meeting with SGV shareholders that was slated to take place on Feb. 15. The new special meeting with SGV shareholders will be held in Montreal on March 14.
To placate shareholders, Ascendant increased its offer by 6 million to a total of 36 million of its common shares in exchange for all of the issued and outstanding shares of SGV. Ascendant has also agreed to appoint one SGV board member to its board.
SGV is a base metal exploration and development company with principal assets in Arizona. If the deal is closed Ascendant says it will immediately start at advancing its Zonia copper mine towards feasibility as well and will evaluate the economics of its Isle copper mine. Both Zonia and Emerald Isle are past-producing properties.
In Toronto on Feb. 19 Ascendant shares were up nearly 5% or 5 to 11 on just over 720,000 shares traded.
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