A planned merger of two junior mining companies is intended to advance a mineral prospect in Snow Lake.
Rockcliff Resources and Solvista Gold Corp. announced Monday they have entered into a letter of intent that sets out the terms of a proposed share-based merger.
The companies said the reason for the merger is to combine Rockcliff’s Snow Lake Project with Solvista’s working capital to establish “a strong, well-funded exploration company with an experienced management team.”
The merged company “will be well-positioned in Manitoba, a stable mining-friendly jurisdiction, to advance the Snow Lake Project,” read a joint news release.
Ken Lapierre, president and CEO of Rockcliff, said the company’s board and management unanimously support a merger.
“The new Solvista will be well funded and well managed by a dynamic board with an excellent track record and long history of success,” he said in the release.
“The new Solvista will focus on systematically advancing its Manitoba high-grade copper assets through a diligent priority process focussing on its best assets that can generate exciting news in the coming months with a view to long-term success to transition the company from an explorer to a mine finder.”
Bruce Durham, president and CEO of Solvista, called the plan “a classic business amalgamation that combines management, directors, projects and capital at a low point in the [mining] cycle.”
Solvista has been searching for an acquisition or merger opportunity since completing an option agreement on a copper-gold property in Colombia more than a year ago, Durham said.
Envy
Rockcliff’s Snow Lake Project consists of several mineral properties around Snow Lake. Durham said there is “no doubt” the properties would be the envy of any serious explorer.
“The projects all host significant mineralization and several have at least historic resources outlined already,” he said.
Durham singled out the Talbot property, discovered in 2003 by Hudbay, which has not been drilled since being acquired by Rockcliff last year.
“It boasts a historic resource by Hudbay, remains open to expansion, has proximal untested targets as well as indications of mineralization on other parts of the property,” he said. “It is already a high-grade copper zinc gold silver deposit and we feel that it could be just a few holes short of becoming a very significant larger deposit.”
Rockcliff is earning a 51 per cent interest in the Talbot property from Hudbay.
Completion of the Rockcliff-Solvista merger is subject to a number of conditions, including acceptance by the TSX Venture Exchange.
Note: Neither the TSX Venture Exchange nor its regulation services provider accepts responsibility for the adequacy or accuracy of information supplied by Rockcliff and Solvista.
