Magna Terra Minerals Inc. said Oct. 15 that it has entered into a definitive share purchase agreement to acquire all of the issued and outstanding common shares of Anaconda Mining Inc.'s subsidiary 2647102 Ontario Inc., owner of the Great Northern and Viking gold projects in Newfoundland and Labrador, and the Cape Spencer gold project in New Brunswick.
The acquisition, which is expected to be completed on or before Dec. 31, constitutes a reverse take-over and non-arms' length transaction, with Magna Terra issuing an aggregate number of its common shares equal to 100% of its outstanding common shares on the acquisition closing date, to Anaconda.
Anaconda will become a control person of Magna Terra following the closing of the acquisition. Magna Terra President Lew Lawrick and CEO Michael Byron, and directors of the company, are also directors of Anaconda.
Following the acquisition's completion, but prior to completing the financing, it is anticipated that Anaconda will hold about 50% of the issued and outstanding shares of Magna Terra, on a post-consolidation basis.
In September 2018, Anaconda secured an option to acquire the Cape Spencer gold property, which includes 106 claims covering more than 2,350 hectares.