Vancouver – Shareholders of La Mancha Resources (LMA-V) will meet September 20th to vote on a reverse-takeover transaction to create a new mid-tier gold producer with mines and exploration assets in Australia, Ivory Coast, Sudan and Argentina.
In early June, La Mancha entered into a definitive agreement with a wholly owned subsidiary of Areva NC, a state-owned French corporation, to create a new gold company through the reverse takeover (RTO) process. A private placement financing for gross proceeds of $40.28 million was proposed as a component of the transaction. On closing, Areva’s subsidiary will hold at least a 60% interest in the new entity.
La Mancha recently filed an information circular with Canadian securities regulators for the proposed RTO and related financing. Shareholders will meet in late September to approve resolutions related to the proposed transaction, which is also subject to regulatory and other approvals.
The board of La Mancha has determined that the transaction is “in the best interest of La Mancha and its shareholders.” Once the deal is concluded, La Mancha will hold a 40% interest in the only operating gold mine in Sudan, a 51% interest in the only operating gold mine in Ivory Coast, a 51% interest in the Frog’s Leg underground mine in Australia, and 30 exploration projects in four countries.
La Mancha has also filed National Instrument 43-101 technical reports for the Frog’s Leg mine and the White Foil gold project in Australia, and also for the Hassai and Ity mines in Sudan and Ivory Coast, respectively.
Be the first to comment on "La Mancha poised to enter gold business with $40.2-million financing"