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Polar Star Mining (TSX:PSR) and Iron Creek Capital (TSXV:IRN) have agreed in principal to merge into one company dubbed “Newco”, with Polar Star acquiring all the outstanding common shares of Iron Creek. A non-binding letter of intent has been signed between the two, with a goal of coming to a definitive agreement within 30 days.
Polar Star Mining (TSX:PSR) and Iron Creek Capital (TSXV:IRN) have agreed in principal to merge into one company dubbed “Newco”, with Polar Star acquiring all the outstanding common shares of Iron Creek. A non-binding letter of intent has been signed between the two, with a goal of coming to a definitive agreement within 30 days.
According to the press release:
Under the Transaction an Iron Creek shareholder would receive, in exchange for each Iron Creek share held by it, 3.82 common shares of Polar Star. All outstanding Iron Creek options, warrants or other derivative securities will roll over on the same terms into Polar Star options, warrants or other derivative securities, subject to adjustment to reflect the Exchange Ratio.
In total, Polar Star will issue 147,479,415 common shares to Iron Creek shareholders, representing 42.1% of Newco, with a resultant total of 350,496,190 outstanding common shares of Newco. At the closing of the Transaction, the Polar Star shares will be consolidated at a ratio to be determined by the parties.
Polar Star will continue into British Columbia and the name of Polar Star will be changed to a name to be agreed upon by Polar Star and Iron Creek. Polar Star intends to maintain a main board TSX listing for Newco.
Click here to read the Polar Star Mining Corporation (TSX:PSR) press release