Mainstream Minerals (TSX-V:MJO, StockForum), a Toronto-based development stage firm engaged in the acquisition and exploration of mineral resource properties in Northwest Ontario, announced that Champagne Resources and the company's 100% owned subsidiary entered into an amalgamation agreement on March 12, 2014.
According to the news release, Mainstream will acquire all outstanding and issued shares of Champagne and pursuant to the agreement every Champagne shareholder is entitled to receive two common shares in Mainstream for every one Champagne common share.
This transaction will result in the issuance of 53,777,454 Mainstream shares to former Champagne shareholders with the holders of the remaining 13,802,014 common share purchase warrants of Champagne receiving two common share purchase warrants of Mainstream upon completion.
Chris Hopkins will become CEO and director of Mainstream as part of the aforementioned transaction.
Conditions of the agreement commit Mainstream to complete $500,000 of financing prior to closing and Champagne is to terminate all outstanding stock options.
The transaction is still subject to shareholder and TSX Venture Exchange approval.
Mainstream Minerals was in the news recently when the company entered into a debt settlement agreement yesterday.
Shares shot up 33.33% on the news to $0.02 per share.
Currently there are 65.1m outstanding shares with a market cap of $1.3 million.