Catalpa Resources Limited (ASX:CAH) and Conquest Mining Limited (ASX:CQT) have advanced plans to raise $150 million after the two gold producers complete their all-scrip merger of equals.
Both companies have submitted a scheme of arrangement document to the Australian Securities Exchange, urging shareholders to vote in favour of the proposed merger.
In June both companies announced they would merge to become a new entity called Evolution Mining.
After the $150 million pro-rata renounceable entitlement offer is complete Evolution Mining will have a market value of more than $1 billion.
Catalpa and Conquest have also inked a deal to buy two gold assets from Newcrest Mining Limited (ASX:NCM), in a deal that will see Newcrest emerge with around one third of ownership in Evolution Mining.
In the last half of 2010 Catalpa Resources reported a maiden net profit of just under $2 million, underpinned by record gold production.
