Oban Mining Corp. (TSX: T.OBM, Stock Forum) said Tuesday it is launching share exchange takeover bids with each of
Eagle Hill Exploration Corp. (
TSX: V.EAG,
Stock Forum)
Temex Resources Corp. (
TSX: V.TME,
Stock Forum),
Ryan Gold Corp. (
TSX: V.RYG,
Stock Forum) and
Corona Gold Corp. (
CSE: C.CRG,
Stock Forum).
The deal brings together key mining sector players including
Dundee Corp.'s (
TSX: T.DC.A,
Stock Forum) Ned Goodman and Sean Roosen, as well as combining a portfolio of properties in Ontario, Quebec and the Yukon Territories.
“This is an exciting new chapter in Canadian mining,’’ said Oban Chairman
John Burzynski in a press release.
Post consolidation, New Oban aims to combine major exploration assets in Ontario and Quebec under experienced management in a well-capitalized vehicle, with over $65 million in cash and a significant gold resource.
Burzynski said he is particularly excited to have Ned Goodman’s
Dundee Corp. (
TSX: T.DC.A,
Stock Forum) and
Osisko Gold Royalties Ltd. (
TSX: T.OR,
Stock Forum) as key shareholders in the resulting company.
In addition, Oban said it has agreed to complete a private placement with Osisko Gold Royalties Ltd. whereby Osisko will invest up to $20 million in the shares of Oban at $0.11 per, giving Osisko no more than 10.9% of the New Oban.
Eagle Hill soared 135% to 80 cents, leaving a market cap of $19.1 million, based on 23.8 million shares outstanding. Ryan Gold gained 20.8% to 14.5 cents, leaving a market cap of $17 million, based on 117.1 million shares outstanding. Temex was off 7% to 6.5 cents, leaving a market cap of $12.1 million, based on 186.6 million shares outstanding.
Oban is focused on northern Ontario and the Urban Barry area of Quebec.
Eagle Hill is focused on the exploration and development of the high-grade Windfall Lake gold deposit, located between Val d’Or, and Chibougamau, Quebec.
Temex has a portfolio of precious metals properties in northeastern Ontario, including the Timmins Whitney Gold Project, in partnership with Goldcorp Canada Ltd.
Ryan Gold is focusing on exploration properties in the Canadian Yukon and and has $21 million in cash and $800,000 in marketable securities.