Great Republic Mining (CSE:GRM) has entered into a reverse takeover agreement with Lode Gold Resources Inc's subsidiary, Gold Orogen, focusing on gold exploration in Yukon and New Brunswick.
The Canadian exploration company entered into a binding agreement to be acquired by Lode Gold Resources Inc.'s wholly owned subsidiary via a reverse takeover (RTO) transaction that will see Lode Gold acquire all issued and outstanding shares of Great Republic Mining (CSE:GRM).
The newly formed entity will continue operations under the name Gold Orogen.
As part of the transaction, Lode Gold plans a tax-efficient spinout of Great Republic Mining (CSE:GRM)'s assets, leveraging the reverse takeover. Following the deal's closing, Great Republic Mining's shareholders will hold 5.94% of the newly formed entity, while Lode Gold will control up to 74.16%, assuming full subscription of a concurrent $1.5-million financing round.
Fancamp Exploration Ltd (TSX-V:FNC, OTC:FNCJF). will retain a 19.9% stake in the company.
The newly formed Gold Orogen will continue its focus on gold exploration, with significant assets in the Yukon and New Brunswick regions.
"With gold at all-time high price, a new dynamic gold exploration company with prospective grounds in Yukon and New Brunswick that is already funded with $3 million to pursue exploration work is an excellent opportunity for all stakeholders,” Bill Fisher, CEO of Great Republic Mining said in a statement.
Shareholders of Great Republic Mining will receive shares in Gold Orogen following the completion of the spinout.