Sister companies Chase Resource (CQS-T) and Delta Gold Mining (DTG-V) have agreed to amalgamate into a new entity, which will retain the former’s name.
The move will consolidate the partners’ interests in the Cikondang gold project in West Java, Indonesia. The amalgamated company will control a 77.5% operating interest in Cikondang and hold a portfolio of more than 20 separate exploration projects in the Philippines.
Terms of the proposed merger call for Chase shareholders to receive one share of the amalgamated company for each existing share held, while Delta Gold shareholders will be issued one share in the new company for every two shares held.
The amalgamated company will have a combined cash and working capital of more than $5 million and just under 22.6 million shares outstanding.
The amalgamation remains subject to shareholder and regulatory approval.
General meetings for shareholders of both companies are scheduled for late April.
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