Vancouver gold miner Lupaka Gold Corp. (TSX:LPK) announced July 5 that it plans to merge with Oakville, Ontario-based Andean American Gold Corp.
(TSX-Venture:AAG) to create a new Peru-focused gold exploration and development company.
Andean shareholders will receive 0.245 shares of Lupaka for each share of Andean American that they own. Andean American would then own 45.27% of Lupaka.
Both boards of directors believe the merger is in the companies’ best interest based on several factors, including:
- geographic diversification with an asset base spread across three regions of Peru and the ability to take advantage of country-wide synergies, relationships and expertise;
- a platform to pursue further acquisitions thanks to a cash balance of approximately $18 million as of June 30; and
- the merging of two complementary shareholder bases.
“Andean American complements and significantly advances Lupaka's goal of creating a pan-Peruvian precious metals-focused company,” Lupaka CEO Eric Edwards said in a release.
