Business
War Eagle Announces a Merger with Champagne Resources to Acquire a Significant Stake in World Class Kirkland Lake Gold Camp
Vancouver, British Columbia--(Newsfile Corp. - January 3, 2018) - War Eagle Mining Company In...
About this update from Kirkland Lake Discoveries Corp.
[{"type":"text","content":"War Eagle Announces a Merger with Champagne Resources to Acquire a Significant Stake in World Class Kirkland Lake Gold CampVancouver, British Columbia--(Newsfile Corp. - January 3, 2018) - War Eagle Mining Company Inc. (TSXV: WAR) (\"War Eagle\" or the \"Company\") and Champagne Resources Limited (\"Champagne\") are pleased to announce that they have entered into an agreement to merge the two companies. Champagne is a Toronto-based private company with a significant land position (3,296 ha) in the world class Kirkland Lake Gold Camp in the Abitibi Greenbelt 8 km from the Town of Kirkland Lake, Ontario and adjacent to Kirkland Lake Gold Inc.'s high grade producing mine. Paul Carroll, Chairman of War Eagle said \"We chose this investment because the best place to find gold is where it has been found before.\"The merger will be effected by what is known as a \"triangular amalgamation\" whereby Champagne will merge with a subsidiary of War Eagle and become a subsidiary of War Eagle itself. On the merger, which values the companies equally, Champagne shareholders will receive an aggregate of 21,990,276 War Eagle common shares, matching the current outstanding shares of the Company. Outstanding Champagne share purchase warrants and options are expected to be exchanged on equivalent terms for War Eagle securities. War Eagle and Champagne have agreed to finalize and sign an amalgamation agreement by January 15, 2018 and the merger, which is subject to TSX Venture Exchange approval, is expected to be completed by the end of February once all conditions have been met including required Champagne shareholder and approvals. The transaction is an arms' length transaction and no finder's fees are payable.Mr. Carroll explained that the acquisition represents the culmination of two years of searching for a mineral property to replace the Tres Marias and Terrazas zinc-copper projects in Chihuahua, Mexico, and is a return to Canada for the Company.Champagne's100% owned Goodfish Kirana Project at Kirkland Lake is a contiguous, 10 km long by 3 km wide land package that until now has never been consolidated or systematically explored on surface or below 200 m depth. Danièle Spethmann, President and CEO of Champagne, stated \"Numerous historical gold showings, significant structural breaks and a land package that has been under-explored wit...