ASX listed Australian gold company Tianshan Goldfields Limited (TGF) (“Tianshan”) and fellow ASX listed Australian gold company Corvette Resources Ltd (COV) (“Corvette”) have agreed in principle to enter into a conditional merger implementation agreement to merge the two companies by way of a Scheme of Arrangement (Scheme). The parties will work towards the preparation and execution of a formalised merger implementation agreement to fully document the terms of the Scheme.
It is proposed that, under the Scheme, Tianshan will acquire all of the issued shares in Corvette in exchange for the issue of shares in Tianshan. The consideration for the Scheme will be two (2) Tianshan shares for every one (1) Corvette share held on the implementation date of the Scheme. The boards of Tianshan and Corvette have unanimously agreed on the consideration for the Scheme and believe the merger represents an opportunity to create a new entity better positioned for growth than either company on a standalone basis.
Upon implementation of the Scheme the merged entity will have a market capitalisation of approximately AU$60M. The board and management of the merged entity are currently being determined, but it is likely that key executives of each company will be retained. Further details of the board and management of the merged entity will be detailed to the market in due course.
The Tianshan and Corvette boards believe the combined corporate, management and technical strengths of both companies will result in increased financial and support capabilities, providing a sound platform for on-going exploration and future development activities.
The merged entity will have approximately AU$30M in the bank and the highly prospective Plumridge Gold Project in Western Australia. On 20 October 2009 Corvette announced significant results (including 3m @ 40.33g/t gold) from drilling at the Camaro Prospect within the Plumridge Project in Western Australia. Plumridge is located 60km south of the 5Moz Tropicana-Havana gold deposit, owned by the AngloGold Ashanti Australia/Independence Group JV, and where the owners have announced plans to commence production from 2013.
Tags: Corvette Resources, cov, Gold Mining, Merger, TGF, Tianshan Goldfields
