Red Eagle Mining Corp. intends to consolidate its ownership in 76.43%-owned Red Eagle Exploration Ltd. by acquiring all of the latter's shares it did not already own.
Red Eagle Mining will issue one share for every two Red Eagle Exploration shares held, valuing the latter at 13.5 Canadian cents per share, it said March 2.
The combined company will own the operational Santa Rosa gold project and will be able to develop the Vetas and California gold projects and the Santa Ana silver property all located in Colombia.
Following the deal, Red Eagle Exploration shareholders will own about 10.51% of Red Eagle Mining's shares.
Red Eagle Exploration shareholders will vote on the transaction in an April 5 meeting.
