Nebu Resources Inc. entered into a letter of intent for the reverse takeover of Linceo Media Group Inc., a private company engaged in mining and exploration of industrial and other minerals.
The company will also spin out its existing mining properties for shares of a private company on behalf of its existing shareholders, according to a June 12 statement.
Following the merger, Ridge Resources Ltd. will own 15.4% of the company, Lauterbrunnen Developments will own 14.1% and Rev Royalty Income and Growth Fund will own 12.3%.
Ridge Resources is company-owned and controlled by Kyler Hardy, the CEO of Linceo Media. Rev Royalty Income and Growth Fund is an investment trust in which Nebu President and CEO Paul Crath is a member of the trustee.
Nebu also intends to consolidate its issued and outstanding common shares on the basis of one new share for every five shares held.
The transaction is expected to close in September.
In late March, Nebu terminated its proposed change of business transaction and said it intends to remain in the mining industry or look for prospects in other industries.