Vancouver – APAC Minerals (APC-T) plans to merge with Toronto-based Golden China Inc., a private merchant bank sponsored by the Kingsway Group. The combined company should have a higher profile and be in a better position to seize new opportunities in China’s mining industry.
If the deal is approved, current APAC shareholders will end up with some 44% interest in the new company, to be renamed Golden China Resources while Golden China’s current shareholders will hold the majority 56% stake.
The proposed share exchange is 2.4 APAC common shares for each Golden China common share.
APAC proposes to issue some 48 million shares to Golden China’s shareholders which will result in 86.6 million shares outstanding.
Golden China Resources’ board will comprise six people from Golden China and three from APAC.
With cash and liquid securities of over $20 million, the new company aims to continue its focus on high potential mineral projects with near-term production potential.
The companies view the merger as a win-win situation. The resulting company should benefit from APAC’s expertise in exploration and development and Golden China’s financial assets and connections in the Chinese mining industry.
APAC has several mineral properties in southwest China and Inner Mongolia which it intends to explore and develop. The company plans to drill 5,000 metres beginning in February to outline resources on its Nibao South gold property in southern China.
Golden China invests in the precious metals sector in China and says it has an edge owing to its sponsor’s Chinese roots and financial savy.
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