Serengeti Resources (TSXV: SIR) and Sun Metals (TSXV: SUNM) are merging to create a premier, Canadian multi-asset Copper-Gold developer with a portfolio of assets in British Colombia’s prolific porphyry mining district.
There is a lot we like about this transaction…
• The market for base metals is heating up and there are not a lot of scalable, high-quality copper projects in safe jurisdictions in public companies.
• The merged entity will immediately unlock value by combining the Kwanika and Stardust properties. The conceptual development and production scenario for Kwanika/Stardust will combine multiple high-grade mining centers to feed a central processing facility, creating real synergies like streamlined permitting, achieving critical scale, a focus on higher grades, and reduced capital intensity.
• Beyond Kwanika/Stardust, the newco will have the capital to explore its extensive portfolio of prospective earlier stage properties in the region, including Lorraine/Top Cat and East Niv. •
The intention is to build a company with a strong foundation, top notch technical team and multiple kicks at the can to have a real shot at turning a development stage property into a mine, while simultaneously advancing a number of highly prospective exploration properties toward the development stage. We have seen this multiple times with this group – they develop assets in order to be built whether it is by them or an acquiring entity.
• People: - We have enjoyed working with Mark O’Dea, Exec Chairman of Sun Metals, on a number of the other companies he is involved with, including Discovery Metals and Pure Gold Mining. Multiple other people in our network are involved, like Peter Magaw, Technical Advisor and Lew Lawrick, Director. - Strong Board/Management Alignment
• Insiders bought 10% of the financing, Mark O’Dea owns 10m shares.
• Strong institutional backing

Listen to Mark O'dea on You tube, Hosted by Adelaide Capital

https://www.youtube.com/watch?v=sdu1OJ2tD7k