Barsele Minerals To Acquire Gold Line Resources
Reduced trading volume and capital flows on the TSX Venture has led to another merger, this time between Barsele Minerals (TSXV: BME) and Gold Line Resources (TSXV: GLDL), which will see the creation of a Scandinavian gold explorer.
The combination will bring together Barsele’s flagship project, the Barsele gold project in Sweden that is being developed under a joint venture with Agnico Eagle, and Gold Line’s exploration stage projects, which are found in the Gold Line, Skelleftea, and Mjosa-Vanern mineral belts of Sweden, and the Oijarvi belt in Finland. Combined, the projects cover 104,000 hectares of land across 41 exploration permits.
Largely, the deal will consolidate much of the Gold Line mineral belt, where the Barsele Project is located, with Gold Line’s Paubacken and Storjuktan projects located to the immediate south and north. Barsele currently has indicated resources of 324,000 gold ounces, and inferred resources of 2,086,000 gold ounces.
Under the terms of the deal, Gold Line investors will receive 0.7382 of a Barsele share for each share of Gold Line held, with Gold Line investors expected to own 20% of the resulting issuer. Based on yesterday’s closing price, the exchange ratio represents roughly $0.14 a share for Gold Line investors, a slight premium to its $0.12 close yesterday.
Despite being the small fish in the transaction, the resulting management team will see Gold Line’s CEO Taj Singh become CEO and President of the resulting issuer, while Toby Pierce, current Chair of Gold Line, will become the Chair of the resulting issuer. Benjamin Gelber of Gold Line meanwhile will become the VP Exploration.
“This Transaction is a unique opportunity to bring together complementary assets and teams to create a leading gold company with a district-scale focus in Scandinavia. Barsele is delighted to welcome Taj Singh as the new President and CEO and Toby Pierce as Chair following closing. The leadership changes and acquisition of Gold Line’s district-scale exploration portfolio and the Oijärvi Project allows the creation of a larger, stronger and more diversified company with improved access to capital and one of the largest gold exploration portfolios in Scandinavia,” commented Barsele CEO Gary Cope on the transaction.
The transaction remains subject to shareholder approval, regulatory approval, and the completion of a $1.0 million financing. The transaction is expected to close in February 2024.
Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
