In merger news, Australian gold miners Tianshan Goldfields Ltd
(ASX:TGF) and Corvette Resources Ltd
(ASX:COV) have agreed to merge.
In a statement to the market the two companies say they believe the merger represents an opportunity to create a new entity better positioned for growth than either company on a standalone basis.
The merged entity will have a market capitalisation of around $60 million.
Under the proposed scheme of arrangement Tianshan is to acquire all of the issued shares in Corvette in exchange for the issue of shares in Tianshan.
The consideration for the scheme will be two Tianshan shares for every one corvette share.
The merged entity will have approximately $30 million in the bank and a highly prospective Plumridge Gold Project in Western Australia.
Looking at the past three years of results for Corvette Resources, the company is yet to post a net profit. And Tianshan Goldfields has posted net losses in the last five years.
