Golden Reign Resources Ltd. and Marlin Gold Mining Ltd. on May 15 announced a non-binding letter of intent to combine their businesses and rename the resulting entity.
The companies envisage Mako Mining Corp as the new name, which may still change, and current Golden Reign shareholders will control 55% of the new entity and Marlin shareholders the remainder.
The flagship projects will be Golden Reign's San Albino-Murra gold-silver project in Nicaragua and Marlin's La Trinidad gold mine in Mexico's Sinaloa state.
Golden Reign CEO Kevin Bullock is expected to continue as CEO of the merged company. Both companies will nominate three board members and will jointly determine one additional independent board member who will serve as nonexecutive chairman, for a seven-member board.
A definitive agreement is expected as soon as possible after the end of the exclusivity period June 15.
The business combination deal also included details for a restructuring of Sailfish Royalty Corp.'s royalty on the San Albino property.