Tectonic Metals gets funding for gold exploration in Alaska
The company's Flat gold project is located 40 km north of the giant Donlin gold project.
MAG Silver Corp. (TSX: MAG) announced on Friday the signing of a definitive agreement to acquire Canadian junior miner Gatling Exploration Inc. (TSXV: GTR) in an all-share transaction.
Gatling shareholders would receive approximately 0.017 of an MAG common share of for each Gatling share held, thus valuing Gatling at approximately C$0.40 per share. The share consideration reflects a 49.1% premium relative to the company’s last closing price on the TSX Venture Exchange.
MAG has also agreed to provide Gatling with a bridge loan of up to C$3 million to finance the company’s accounts payable and operating expenses. The loan is convertible into 19.9% of Gatling’s issued and outstanding shares.
Shares in Gatling shot up 37% following news of its acquisition by MAG, giving the Ontario-focused gold explorer a market capitalization of C$16.8 million.
Gatling’s prized asset is the Larder gold project located in the Abitibi greenstone belt of Northern Ontario. The property hosts three high-grade gold deposits along the Cadillac-Larder Lake Break, and is 35 km east of Kirkland Lake. Total gold resources on the deposits are estimated at 388,000 oz indicated and 933,000 oz inferred.
“Gatling’s Larder property gives us a substantial toe hold along this regionally productive gold-bearing structure where we believe more gold should be findable,” George Paspalas, MAG Silver’s president and CEO, said in a news release.
MAG is primarily focused on silver-gold dominant projects in the Americas. Its project portfolio is anchored by Juanicipio silver project (44% owned) in Mexico, being developed with Fresnillo Plc (56%), the operator.
