Junior explorer Oro Blanco Resources (ORBL-C) and privately owned Minpro, a mining and waste management company, are merging to form a new company named Amalco.
Under the proposal, which is still subject to regulatory and shareholder approval, Oro will acquire a 70.7% interest in Amalco, while Minrop gains 24.5%. The remaining interest will be held by a third party.
Shareholders of Oro will also receive a total of 1.8 million warrants of Amalco and Minrop. 2.2 million of each Series A warrant entitles the holder to buy one additional Amalco share, priced at 50 per share. Holders of Series B and Compensation warrants can acquire an additional share for 30 a share.
Furthermore, shareholders of Minpro will receive promissory notes of Amalco in the amount of $1.8 million, with the principal payable annually at an amount equal to 25% of Amalco’s future net profits after tax.
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