Arc Exploration Ltd. said Feb. 27 that it agreed to acquire private firm GNR Minerals Pty. Ltd., which owns the Manitou gold project in Ontario.
Under the terms, ARC Exploration will issue 2,575,000 shares on a preshare split basis and 515,000 performance shares at an issue price of 1 Australian cent apiece.
The transaction is subject to the completion of due diligence by the parties by March 29 and receiving all regulatory and shareholder approvals.
Additionally, ARC Exploration is also required to undertake a placement of 3,750,000 shares at 40 cents apiece to raise A$1.5 million.
The proceeds will be used to advance exploration at the Manitou project, to fund exploration at the Trenggalek gold project in Indonesia, as well as for general working capital.
The company also intends to undertake a share split on a 20-for-1 basis at a shareholders meeting.
Upon deal completion, Nicholas Rowley and Marcello Cardaci will be appointed as nonexecutive directors of ARC Exploration, while Simon O'Loughlin will resign from the company's board.
The transaction is expected to close by May 16.