Vancouver-based junior exploration company Heatherdale Resources Ltd. (TSX-V: HTR) this morning announced a definitive agreement to acquire Vancouver-based junior exploration company Niblack Mineral Development Inc. (TSX-V:NIB).
Earlier this month, the companies announced plans for a friendly acquisition. Heatherdale and Niblack owns a 60% interest and 40% interest, respectively, in the advanced exploration stage Niblack Project in Southeast Alaska.
“I think [the deal] is in the best interest of both companies to move the Niblack project forward,” Heatherdale president and CEO Patrick Smith told Business in Vancouver.
Smith said the two companies launched the joint-venture in 2008 and 2009, with Heatherdale providing operating capital in return for equity.
“We have spent around $28 million on the project to date, earning in our 60% [equity stake],” Smith said. “And then it just made sense to take that to 100% in a friendly merger.”
The deal provides that Heatherdale will acquire all common shares of Niblack in exchange for Heatherdale shares, valued at 0.50 Heatherdale share per Niblack common share.
At press time, Heatherdale’s stock was down just over 3% to $0.58.
Jenny Wagler
@JennyWagler_BIV