PERTH (miningweekly.com) – Junior explorer Argentina Mining has made a takeover offer for unlisted Simba Minerals of two shares for every one share held in Simba.
Argentina Mining said on Thursday that the proposed merger would bring to market a reinvigorated single corporate entity with exploration assets in some of the most prospective terrains in East Africa and the Argentine Andean Cordillera.
The proposed merger would also increase Argentina Mining’s shareholder base, expand its market appeal, spread sovereign risk, expose the merged company to greater development potential within its existing portfolio, and provide further opportunities for portfolio expansion.
Simba holds a 99.95% interest in two gold projects in Tanzania over a combined terrain of 564 km2. The unlisted company has undertaken extensive and detailed exploration within these projects, defining a number of gold targets, which Argentina Mining said warranted immediate further exploration.
Argentina Mining further said that it would also look to raise about A$125 000 through an equity placement, subject to shareholder approval.
In the interim, and as a condition of the merger, the key shareholders of Simba would procure third-party investors to provide the funds as a loan, which would be converted into Argentina Mining shares during the placement. This would provide the merged entity with about $525 000 in cash post the placement.
Argentina Mining would also undertake a number of staged capital raisings to fund exploration work in Tanzania, in the hopes of discovering or developing a Joint Ore Reserves Committee-compliant resource of at least 250 000 oz by the end of 2014 and advance at least one of its own Argentine projects.
Argentina Mining’s project portfolio includes previously established copper/gold targets at Cerro Blanco and regional exploration projects near Barrick Gold’s Veladero and Pascua-Lama operations.