Mithril launches strategic review as Newrange deal falls through
Australia-listed Mithril Resources said on Wednesday that it had initiated an immediate strategic review, after an agreement for a friendly business combination with Canada’s Newrange Gold was terminated.
Mithril stated that its board would be reviewing all options regarding the recapitalisaiton of the company and securing operational funding.
At the end of September, Mithril had A$264 000 in cash and cash equivalent with only 0.59 quarters of cashflow available.
On Tuesday, Newrange announced that the business combination agreement had been terminated, as the company had failed to raise the funding required for the reverse takeover.
“Despite overwhelming shareholder support and unanimous approval from both boards, the continued bear market for junior mining equities has prevented the completion of the concurrent financing of $3.6-million prior to the second-quarter hearing on November 22, which is a condition precedent of the scheme implementation deed and the reverse takeover,” said Newrange president and CEO Robert Archer.
He stated that the companies would remain in contact should there be a future opportunity to propose an alternative transaction.
The business combination would have created a new America’s-focused exploration and development company. Mithril owns the Copalquin gold and silver project in Mexico, while Newrange focuses on exploration in the Red Lake district of Ontario, Canada.
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