GoldTrain Resources Inc. said Nov. 21 that it signed a binding letter agreement to acquire all of the issued shares of Ontario-based Idaho Champion Gold Mines Ltd.
The transaction will materialize through a three-cornered merger, whereby an Ontario-incorporated subsidiary of GoldTrain will merge with Idaho Champion.
The resulting entity will be named Idaho Champion Gold Mines Canada Inc. and will continue its listing on the Canadian Stock Exchange following completion.
Meanwhile, Idaho Champion agreed to lend GoldTrain C$100,000 to settle certain outstanding liabilities and expenses related to the transaction. In case the deal is not completed, the loan amount will be forgiven by Idaho Champion as a break fee.
Idaho Champion also plans to raise up to US$1.5 million in a private placement.
In addition, GoldTrain looks to issue up to 3 million common shares to settle outstanding debts and liabilities as well as consolidate its share capital on a 1-for-3 basis.
