Solitario, Altoro show urge to merge

Solitario Resources (SLR-T) has replaced its takeover bid for Altoro Gold (ATG-V) with an agreement unanimously approved by both boards of directors.

Under the plan, shareholders of Altoro will exchange three shares for one share of Solitario; warrants would be traded at a similar exchange rate.

Altoro’s two principal shareholders, representing nearly 30% of the company, have OKed the transaction, which is still subject to regulatory approval. The deal is expected to be completed by the fourth quarter.

Solitario will assist Altoro in completing the transaction by purchasing 1 million units of Altoro for $250,000. A unit consists of one share and one-half share purchase warrant. Each warrant is exercisable at 35 per share for one year.

Altoro’s primary assets include the Pedra Branca platinum-palladium project in Brazil, the Rincon del Tigre nickel-platinum property in eastern Bolivia, and four gold properties.

Vancouver’s Rockwell Ventures (rcw-v) is earning a 60% interest in the 126,000-acre Pedra Branca property by spending US$7 million over four years.

After the transaction, Solitario will have 23 million shares outstanding, with Altoro shareholders representing 27%.