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Tarsis Resources (TSXV:TCC) and Estrella Gold provided an update on Tarsis’s acquisition of Estrella Gold (TSXV:EST). The companies reported that the transaction is progressing on schedule and is expected to be completed by the end of April.
Tarsis Resources (TSXV:TCC) and Estrella Gold provided an update on Tarsis’s acquisition of Estrella Gold (TSXV:EST). The companies reported that the transaction is progressing on schedule and is expected to be completed by the end of April.
As quoted in the press release:
The $2 million financing is well underway with amounts currently being allocated to investors, including current shareholders, and new investors. Tarsis has agreed to change the price of the offering from the previously announced $0.35 per subscription receipt to $0.25 per subscription receipt, on a post share consolidation basis of one new share for ten old shares.
Each subscription receipt will become a unit on closing of the acquisition of Estrella, which is comprised of one common share and one common share purchase warrant exercisable to acquire one common share for a period of three years at $0. 40, on a post share consolidation basis. This will allow the four month hold period to commence sooner for the investors in the initial tranche.
The companies reported a number of other positive points with regards to the transaction:
The independent committee of the Board of Directors of Estrella commissioned Ross Glanville & Associates Ltd. and Bruce McKnight Minerals Advisor Services to complete a fairness opinion on the transaction. The opinion has been completed and it concluded that the transaction was “fair from a financial point of view to existing Estrella shareholders.” The completion of this report is one more step towards completing the transaction.
The information circular for meeting of the shareholders of Estrella to approve the transaction has been completed and will be mailed by March 13, 2015. The special meeting of the Estrella shareholders will be held on Wednesday, April 8, 2015, with closing of the transaction being scheduled for the end of April, 2015. The record date for shareholders of Estrella to be entitled to vote on the transaction is Wednesday, March 4, 2015.
The name Alianza Minerals Ltd. has been reserved for the new company. The new name, which is Spanish for “alliance”, was chosen to reflect the prospect generator model followed by the company. The Alianza team has also completed a detailed plan and budget and presented projects to potential interested parties at the PDAC conference in Toronto from March 1st to 4th.
The shareholders of Estrella have shown strong support for the transaction with 49.6% signing lock up agreements stating that they will vote in favour of the transaction as presented. This is a key item in completing the transaction and indicates that the transaction is very likely to be approved by the Estrella shareholders at the required shareholders meeting.
Click here to read the Tarsis Resources (TSXV:TCC) press release
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