Metminco Ltd. said March 13 that it signed a nonbinding deal to acquire Colombia-focused Andes Resources Ltd. for 33.5 new Metminco shares for every Andes share.

The deal, subject to a formal agreement, would give Metminco access to gold- and copper-prospective exploration tenements in the country. Andes Resources holds a 90% interest in about 800 square kilometers of applications and granted titles, prospective for epithermal gold-silver veins and porphyry gold-copper.

Metminco will restructure its debt with RMB Australian Holdings by converting A$2.5 million in debt to equity and improving the repayment schedule for the A$2 million balance.

Meanwhile, the company will raise A$4 million upon completing the deal.

On the deal's closing, the resulting entity's board will comprise Metminco Executive Chairman Kevin Wilson taking up the role of nonexecutive chairman, Jason Stirbinskis assuming the managing director post and Ross Ashton as nonexecutive director.

Nonexecutive directors Roger Higgins and Glenister Lamont are expected to resign from their posts when the merger is complete.