Rob McEwen, current Chairman of McEwen Mining (TSX: MUX) and founder of Goldcorp, is set to hit the public markets with another resource company, via the proposed takeover of Satori Resources (TSXV: BUD). Post-transaction, McEwen is slated to own a 37.6% interest in the exploration stage company.
The proposed transaction, if approved, will see McEwen’s private resource firm, Apollo Exploration, acquired by Satori in an all-stock transaction. The deal would see Apollo acquired via the issuance of 60.0 million shares at a price of $0.05 per share, and is subject to the condition that Apollo has $1.5 million in cash on the balance sheet at the time of closing and the signing of a definitive agreement.
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The deal will also see McEwen obtain a right of first refusal on royalty or streaming deals at the Tartan Lake Gold Mine Project, Satori’s current flagship property, as well as the pre-emptive right to maintain his interest in the company in subsequent financings. McEwen will also hold the right to appoint two directors to the firms board, with McEwen indicating that one appointee will be his son, Alex McEwen. A new CEO of the company meanwhile will be put into place following a search for a replacement.
Apollo brings to Satori three separate projects in the shadow of the headframes of major Canadian gold mines. Current exploration projects held by the company including one near the Canadian Malartic Mine, the Hemlo Mine, and the Hammond Reef Project. The firms Malartic South project, found adjacent to the Canadian Malartic Mine, appears to be the firms flagship project, with half the property containing sedimentary rocks of the type that host significant gold deposits in the region, while the other half contains felsic intrusive rocks that are prospective for copper, with a historic strike of 300 metres of copper mineralization being found on the property.
The HEES property, near to the Hemlo Mine, has had historical placer mine occur on it, with exploration slated to occur in the spring and summer field seasons. The Hammond Reef North and South projects meanwhile are prospective for large tonnage, low grade gold deposits.
Satori’s main project, the Tartan Lake Mine, which is found near Flin Flon, Manitoba, meanwhile is slated to see a deep drill program occur to follow up on a 2021 discovery of 23.76 g/t gold over 12.6 metres, while the company also intends to update the resource estimate for the project. The updated resource estimate will then be used for a preliminary economic assessment of the project.
The company is slated to change its name and ticker symbol upon completion of the transaction, with further details not yet provided. A timeline for the closing of the transaction was not provided.
Satori Resources last traded at $0.04 on the TSX Venture.
Information for this briefing was found via Sedar and the sources mentioned. 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.
