After the dust clears on this one, should be a positive move in consolidating the Gold Eagle property, simplifying things for an eventual buyout.
yahoo.reuters.com
UPDATE 1-Exall, Southern Star plan C$400 million merger
Thu Sep 28, 2006 9:46am ET184
Market View
SSR (Southern Star Resources Inc )
Last: $4.45
Change: -0.23 (-4.91%)
Revenue (ttm): $0.0M
EPS: -0.03
Market Cap: $194.98M
Time: 1:47pm ET
UPDATE 1-Exall, Southern Star plan C$400 million merger
Exall Resources, Southern Star to join forces
More Company News...
MONTREAL, Sept 28 (Reuters) - Exall Resources Ltd. (EXL.TO: Quote, Profile, Research) and Southern Star Resources Inc. (SSR.TO: Quote, Profile, Research) said on Thursday they agreed to merge and form a new C$400 million ($360 million) gold exploration company called Gold Eagle Mines Ltd.
Exall will own 53 percent of Gold Eagle, while Southern Star will own the remaining 47 percent.
Southern Star shareholders will receive 1 Gold Eagle share for each Southern Star share and Exall shareholders will receive 0.5428 of a Gold Eagle share for each share of Exall, the companies said.
The two companies have comparable market capitalizations of just under C$200 million each, although Exall has about 76.4 million shares outstanding and Southern Star has some 41.7 million outstanding shares, according to Reuters data.
The business combination will consolidate the Bruce Channel Gold discovery on the Gold Eagle property in the Red Lake, Ontario area into one public concern, the companies said.
They plan to "aggressively pursue" surface and underground exploration and development options on the property. Gold Eagle will have about C$15.5 million in cash for exploration and development, the companies said.
Exall shares were down 5 Canadian cents at C$2.55 on the Toronto Stock Exchange on Thursday morning while Southern Star stock edged up 2 Canadian cents at C$4.70. |
