- 12 Exploration (CSE:TWLV) has announced its intentions to acquire 79 North
- 79 North is a privately held gold explorer, focused on Suriname
- The deal is an exchange of one 79 North share for one 12 Exploration share
- The deal will be preceeded by a private funding round and share placement, aiming to raise C$3 million
- 12 Exploration (TWLV) is currently trading at $0.15 per share
12 Exploration Inc (CSE:TWLV) has announced it has signed an agreement to purchase all outstanding shares of 79 North.
The agreement was negotiated at arms-length and becomes effective on April 29 this year.
79 North is a Toronto-based explorer and developer primarily focused on gold. 79 North has a solid track record of discoveries in South America and globally.
The company currently holds an indirect interest in mineral concessions in Suriname (formerly Dutch Guinea), the smallest sovereign state in South America. 79 North has aims of becoming the premier explorer in this throughly underdeveloped section of the Guiana Shield, the prolific mineralised section of north-western South American.
The company will be purchased through the issuance of one 12 Exploration share for every 79 North share purchased. This will result in 79 North becoming a wholly owned subsidiary of 12 Exploration.
Prior to this, both companies have committed to enter into fundraising efforts, to offer shares in 79 North at C$0.15 per share. The hope is that the company can raise $3 million from this raise, to fund exploration work and development of 12 Explorations properties.
To complete this process, the boards of both companies will be dissolved, with a nomination process to be completed to determine the new board members of 12 Exploration. The board will be increased to four seats to accomodate more personnel.
This new look board will almost certainly carry John North, the CEO, President and Board Chairman of 12 Exploration, along with Carmleo Marrelli the current CFO.
The other two board spots are between Elaine Ellingham, the current interim CEO of Richmond mines and board member of Alamos Gold, the CEO of Jennings Capital, Daryl Hodges, and CPA and venture capitalist, Philip McDonnell.
12 Exploration (TWLV) has a share price of $0.15 with no change for the day at 11.52pm EDT.