VANCOUVER – Smash Minerals Corp. has signed a definitive deal to merge with Prosperity Goldfields Corp. in a move to consolidate their businesses in the Yukon and Nunavut.
The companies announced the friendly deal Thursday and said the merger is slated to close April 13.
Financial terms of the merger were not revealed, but the two companies have a combined value of about $40 million.
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Prosperity (TSXV:PPG) owns the Kiyuk Lake gold property in southern Nunavut.
Smash (TSXV:SSH) holds the Whiskey project, located in Yukon’s White Gold district.
Prosperity president and CEO Bruce Duncan said the deal “represents a major positive development for the shareholders of both companies.”
“It will greatly strengthen the treasury of the combined company and will thereby support an aggressive exploration and drilling program at Kiyuk, where strong drill results have only begun to test numerous well-defined targets . . .”
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Smash president and CEO Adrian Fleming said will help diversify his company’s asset base.
” The proposed amalgamation of Smash and Prosperity will bring enhanced value to Smash shareholders by broadening our exposure with a second gold exploration play that has already returned solid drill results,”
Shareholders are expected to vote on the planned merger at special meetings March 30.
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