Three Vancouver mining exploration firms plan to merge to create a financially stronger firm.
IMA Exploration Inc. (TSX-V:IMR), Kobex Resources Ltd. (TSX-V:KBX) and International Barytex Resources Ltd. (TSX-V:IBX) have signed a letter agreement outlining in principle the terms for a merger.
The proposed deal will not only bring together a management team with decades of exploration, evaluation and production experience, but create a company with $44 million in cash to acquire and advance its projects. The merger will also eliminate the overhead costs associated with having three separate boards of directors.
Alfred Hills, president and CEO of International Barytex Resources will head the new company. Sam Yik, CFO for International Barytex and Kobex Resources will be CFO. Roman Shklanka, chair of Kobex Resources will chair the board of the new company.
The new company will own IMA's Island Copper project located in northern Vancouver Island, near Port Hardy and International Barytex's Shituru copper deposit in the Democratic Republic of Congo.
The deal is conditional on the three companies completing satisfactory due diligence and the signing of a definitive agreement, as well as regulatory and shareholder approvals.
Kobex's share price range during the past week: between $0.35 and $0.39; 52-week high: $0.48; 52-week low: $0.18.
IMA's share price range during the past week: between $0.29 and $0.335; 52-week high: $0.41; 52-week low: $0.20.
International Barytex's share price range during the past week: between $0.07 and $0.09; 52-week high: $0.82; 52-week low: $0.04.