Eros Resources, MAS Gold, Rockridge Resources To Combine To Create Saskatchewan-Focused Gold Explorer
There’s an exploration roll-up underway in Saskatchewan. Eros Resources (TSXV: ERC) this morning revealed that it would be acquiring both MAS Gold Corp (TSXV: MAS) as well as Rockridge Resources (TSXV: ROCK) under a three way merger transaction.
The combined entity on a post-merger basis intends to focus its exploration efforts in Saskatchewan, with a focus on high-grade gold, while also holding copper assets. The entity is to have a total of 77,890 hectares of mineral claims under its combined portfolio, which the trio says will potentially attract larger strategic partners.
The resulting entity is to consist of three directors from Rockridge, one from Eros, and one from MAS Gold. Jordan Trimble of Rockridge is expected to take on the role of President, while Jonathan Wiesblatt of Rockridge will become CEO of the entity. Chantelle Collins has been selected as CFO.
“This is a transformative transaction to create an unparalleled exploration company with significant upside on multi-fronts. The Transaction is expected to bring an immediate increase in value for shareholders of all three companies with ongoing exposure to one of the most robust portfolios of assets in the sector,” commented Tom MacNeill, CEO of Eros, on the proposed transaction.
Under the terms of the transaction, Rockridge shareholders are to receive 0.375 of a common share of Eros for each share of Rockridge currently held. MAS Gold shareholders meanwhile are to receive 0.25 Eros shares for each share of MAS Gold held. Eros shareholders are to hold 42.37% of the resulting company, while MAS Gold shareholders will own 37.33% and Rockridge shareholders will hold 20.30%.
Following the combination, it is expected that Eros will undertake a ten to one share consolidation.
Eros Resources last traded at $0.045 on the TSX Venture.
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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.
