- Sayward Capital (SAWC.P) has signed a non-binding letter of intent (LOI) for a proposed reverse takeover by privately owned mining company, Midex Resources
- The LOI suggests that Midex may take over all of Sayward’s business, which would continue under the control of Midex
- Sayward currently has eight million issued and outstanding common shares listed on the TSX Venture Exchange
- Roughly 800,000 additional shares and 500,00 warrants of Sayward have been reserved for existing commitments outside the proposed transaction
- Sayward Capital (SAWC.P) is unchanged, trading at $0.12 per share as of 2:34 p.m. EST
Sayward Capital (SAWC.P) has signed a non-binding letter of intent (LOI) for a proposed reverse takeover by privately owned Ontario junior mining company Midex Resources.
The LOI suggests that Midex may take over all of Sayward’s business, which would continue under the control of Midex.
According to Sayward, the LOI is expected to lead to a definitive agreement allowing it to sell all of its shares to Midex. The company currently has eight million issued and outstanding common shares listed on the TSX Venture Exchange.
Additional securities reserved for other deals
Moreover, roughly 800,000 additional Sayward shares have been reserved to issue under the company’s stock options. These shares will be exercised in connection with the proposed transaction. Also, another 500,000 Sayward shares are reserved for issuance under the agent’s warrants.
Midex currently has about 73.6 million common shares issued and outstanding. Other than 8.18 million warrants and options, no securities convertible or exchangeable for Midex shares will be considered for the proposed takeover.
As a result of the LOI, Sayward has signed a finder’s fee agreement to pay a related party $87,500 if the takeover closes. However, the completion of the proposed transaction is subject to a number of regulatory conditions.
Lastly, the companies anticipate all of the current directors and officers of Sayward will resign from their respective positions if the deal comes to fruition. The board and management of the resulting Midex entity are likely to include David Jamieson, Glenn Baldwin, John Cullen, Andres Tinajero, Terry Harbort, and Glenn Rochon.
As for management, the team is expected to include David Jamieson as CEO, Doug Harris as CFO, Scott Young as Vice President of Corporate Development, and Tammy Lehtinen as Vice President of Environmental, Social and Governance.
Sayward Capital (SAWC.P) is unchanged, trading at $0.12 per share as of 2:34 p.m. EST