Seeking exposure to Canadian markets, Australian-listed Beadell Resources Ltd. said March 19 that it signed a definitive agreement to acquire Canadian-listed Golden Harp Resources Inc.
Beadell, a junior gold miner, plans to rename the combined company Americano Mining Inc. and said it wants to be listed on both the TSX Venture Exchange and the ASX. If the deal closes, Beadell shareholders will own about 94.5% of the combined company.
As part of the agreement, Golden Harp is to consolidate shares on a 1-for-11 basis. Beadell also said shareholders holding 41.2% of Golden Harp shares agreed to support the transaction.
Meanwhile, Golden Harp plans to raise C$4 million in a private placement that is partly backed by Sprott Inc. and Lundin family-related businesses, Beadell said.
Beadell operates the Tucano gold mine in Brazil. To support mining plans there and retire existing debt, Beadell recently secured a US$60 million credit facility from Sprott Private Resource Lending LP.
