In a major development, NTM Gold Limited (ASX:NTM) and Dacian Gold Limited (ASX:DCN) have agreed to a merger through an NTM Scheme of Arrangement under which Dacian shall acquire complete shares in NTM. In return of every 2.7 NTM shares held at the Scheme Record Date, NTM shareholders shall receive 1 Dacian share and shall hold around 31.6% of the Merged Group, remaining approximately 68.4% to be held by Dacian shareholders.
The merger is expected to unleash the development potential of the Redcliffe Gold Project through regional consolidation, leveraging operational expertise, and processing infrastructure of Dacian. Moreover, the transaction offers NTM financial, processing, and operating strength and the opportunity to deliver NTM shareholders immediate exposure to gold production.
The Merged Group is expected to have:
- Extremely prospective land holding of around 1,300km2 in the Leonora-Laverton District.
- Substantial organic growth pipeline of advanced exploration targets and Mineral Resource growth opportunities.
- Robust cash flows backing discovery and definition of prospective upcoming production sources.
- NTM’s exploration personnel shall offer a continuous and broad knowledge base on the Redcliffe Gold Project.
At AEDT 11:16 AM, NTM share price was up by 42.045% and quoted at $0.125.