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GBM to buy WCB
Posted on Friday, 17 February 2017 14:41
GBM Resources has agreed to pick up Canadian copper and gold explorer WCB Resources for around CAD 4.64 million (USD 3.55 million) in a deal being described as a merger.

The acquiror is offering CAD 0.08 apiece for the company, representing a significant premium over the target’s close of CAD 0.03 on 15th February, the last trading day prior to the deal being announced.

Under the terms of the transaction, WCB’s shareholders will receive eight GBM stocks for every one WCB scrip held.

Both boards have unanimously recommended the offer to their investors.

WCB’s major stockholder Sandfire Resources, which holds a 38.0 per cent stake in the company, has shown its support for the takeover.

Peter Thompson, executive chairman of GBM, stated: "The complementary nature of the two companies' projects creates a strong platform for both companies' shareholders to benefit from a substantial value uplift from a significant increase in combined gold resources at Misima and Mount Coolon, and the ability to step up exploration within the group's extensive landholding.”

The combination of both companies forms an Australasia-focused gold miner with a portfolio of production, development and exploration assets.

Completion is expected during June 2017, subject to a number of customary conditions, including the green light from shareholders and the Toronto Stock Exchange (TSX).

Once GMB has secured AUD 8.50 million in debt funding, the transaction will go ahead.

WCB is headquartered in Vancouver and is a minerals group with a focus on Misima Island in Papua New Guinea.

The company, which was formerly known as WCB Capital Ltd, trades on the TSX.

Perth-based GBM is a resource firm which listed on the Australian Securities Exchange in 2007.

The business has exploration operations in Victoria and Queensland, and aims to become a gold producer in 2017 with the group’s flagship Mount Coolon Gold project.

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