Newrange to acquire Mithril in $10.9 million deal

Newrange Gold Corp. [NRG-TSXV] has struck a binding $10.9 million deal to acquire Mithril Resources Ltd. [MTH-ASX] in a transaction that will be classified as a reverse takeover with Newrange emerging as the surviving entity.

Mithril is an Australian Stock Exchange-listed company with a focus on the predevelopment Copalquin gold-silver project in Durango State, Mexico. The project hosts a substantial high-grade gold-silver JORC (Australasian Code for Reporting of Exploration Results, Mineral resources, and ore reserves) compliant maiden resource in just one of several targets, with significant growth potential.

The Mithril web site shows a resource of 373,000 ounces of gold and 10.9 million ounces of silver (529,000 ounces of gold equivalent), of which almost 30% is classified as “indicated.”

 Under the deal, Newrange has agreed to issue to Mithril security holders the following:

• 08 Newrange shares for every 1,000 Mithril shares for a total of 60.9 million Newrange common shares priced at 18 cents each.
• 08 Newrange warrants for every 1,000 Mithril options held for a total of 3.16 million Newrange warrants exercisable at 77 cents and 3.9 million Newrange warrants exercisable at 36 cents.
• This implies a fully diluted value of $10.9 million.
• The scheme is subject to various conditions, including approval by Newrange and Mithril shareholders at a meetings to be held in August, 2023.

Details of the agreement were announced after the close of trading on May 25, 2023, when Newrange shares closed at $0.09. The shares currently trade in a 52-week range of 24 cents and $0.06.

Newrange President and CEO Bob Archer said the merger represents a new beginning for Newrange shareholders. “Not only does the Copalquin gold-silver project bring tremendous value and upside potential, but the combined experience of the new management team will provide a strong foundation for future growth in the Americas,’’ he said.

Newrange is currently focused on exploration in the Red Lake, Ontario mining camp.

The Western Fold property consists of approximately 2,300 hectares in the Birch-Uchi greenstone belt and is located approximately 12 kilometres north west of First Mining Gold Corp.’s [FF-TSX, FFMGF-OTCQX, FMG-Frankfurt] Springpole gold deposit (4.67 million ounces of indicated material).

The Western Fold property contains a magnetic signature that is indicative of a strongly folded iron formation similar to the one that hosts Newmont Goldcorp Corp’s, [NGT-TSX, NEM-NYSE] Musselwhite gold mine in northwestern Ontario. Although the Western Fold iron formation has never been drill-tested, this geological setting is considered to be highly prospective for gold mineralization, the company said.

Newrange had previously been focused on its Pamlico gold project, which is located about 20 kilometres southeast of Hawthorne Nevada, along U.S. Highway 95. The project covers the historic Pamlico group of mines as well as the nearby Good Hope, Gold Bar and Sunset mines.

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