MAS Gold Enters Definitive Agreement To Be Acquired By Southern Empire

Southern Empire Resources (TSXV: SMP) has entered into a definitive agreement to acquire that of MAS Gold (TSXV: MAS), a firm with two advanced stage gold projects located in the La Ronge Gold Belt in Saskatchewan. The transaction will see MAS acquired via an all share transaction, with shareholders owning 10.3% of the resulting issuer.

MAS currently has two primary projects in Saskatchewan, for which the firm has current mineral resource estimates. The North Lake Gold Deposit has an inferred resources of 417,000 ounces of gold at 0.92 grams per tonne, while the Greywacke North Gold Deposits contains an indicated and inferred resource of 95,600 ounces at 9.92 g/t for 255,500 tonnes and 7.42 g/t for 59,130 tonnes, respectively. The company also has three less prominent projects in the region as well.

Under the terms of the arrangement, shareholders of MAS Gold will receive one common share of Southern Empire for every 8.5 common shares held of MAS. A total of 5,828,090 common shares are expected to be issued in connection with the transaction, resulting in Southern Empire having a total outstanding share count of 57,734,890. The resulting issuer is expected to have a strong balance sheet that features no debt and a cash position of approximately $4.5 million.

We are pleased that the due diligence process has completed in a timely manner to the satisfaction of both parties. Management is now, more than ever, confident in its decision to pursue the acquisition of MAS Gold and looks forward to advancing the La Ronge Gold Belt projects.

Dale Wallster, CEO of Southern Empire Resources

Both boards of directors have approved of the acquisition and recommended that shareholders approve the transaction. It should also be noted that Ronald Netolitzky, a popular figure in Saskatchewan mining operations, is Chairman of Southern Empire, while also serving as CEO of MAS Gold. Similarily, Andrew Davidson, another well known figure in the Saskatchewan arena, is chief financial officer of both firms.

The transaction is expected to close in the second half of 2020.

Southern Empire Resources last traded at $0.73 on the TSX Venture.

Information for this briefing was found via Sedar, MAS Gold and Southern Empire Resources. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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