- Palladium One Mining (PDM) and MetalCorp (MTC) have signed an agreement for a business combination
- Palladium One will acquire all of the issued and outstanding shares of MetalCorp for C$3.3 million
- Upon completion, existing shareholders of PDM will hold about 88 per cent of PDM, and the former MTC shareholders will hold approximately 12 per cent
- Palladium One Mining Inc. (PDM) opened trading at $0.085 per share
Palladium One Mining (PDM) and MetalCorp (MTC) have signed a definitive agreement for a business combination.
Palladium One will acquire all of the issued and outstanding shares of MetalCorp.
Under the agreement, MetalCorp shareholders will receive 0.30 of a common share of Palladium One in exchange for each common share of MetalCorp held.
The exchange ratio implies a purchase price of C$0.026 per MTC share or gross consideration of C$3.3 million.
Approximately 38,703,051 shares of PDM will be issued upon completion of the transaction. Existing shareholders of PDM will hold approximately 88 per cent of PDM, and the former MTC shareholders will hold approximately 12 per cent.
“This transaction advances our strategy of creating value by establishing a partnership with a senior producer and growing a portfolio of critical mineral assets in Canada in support of North American critical mineral supply chains, and it also increases liquidity,” stated Derrick Weyrauch, Chief Executive Officer of PDM.
“We are pleased to be combining MetalCorp’s business with Palladium One,” noted Donald Sheldon, Chief Executive Officer of MTC.
“Based on the TSXV closing prices of each company on the day the agreement was signed, this transaction reflects a 28-per-cent premium for MetalCorp shareholders,” he added.
Subject to certain conditions, including obtaining the requisite regulatory approvals, the Transaction is expected to close by the end of April 2023.
Palladium One Mining Inc. is a Canadian mineral exploration and development company targeting district-scale, platinum-group-element (PGE)-copper-nickel deposits in Canada and Finland.
MetalCorp is a mineral exploration company based in Thunder Bay, Ontario, with gold and base metal projects in the Canadian Shield of Northern Ontario.
Palladium One Mining Inc. (PDM) opened trading at $0.085 per share.