Moribund Bro-X Minerals has agreed to merge with MacDonald Oil Exploration (MACO-C), subject to necessary approvals.
The merger proposal calls for MacDonald Oil shareholders to receive one share and one warrant of the merged company for each MacDonald share. Bro-X shareholders would receive two shares and one warrant of the merged entity for every four shares held.
A Bro-X preferred share issue for $2 million, convertible into common shares at $1 each, would become convertible at 25 cents per common share of the merged entity.
Bro-X was spun off by Bre-X Minerals to hold the Sable and Sangihe Island mineral projects optioned by David Walsh in Indonesia. Bro-X is now headed by Thomas Devlin, the former head of special projects for Bre-X Minerals, a junior company that rose to ignomy with its salted gold project in Indonesia. MacDonald Oil holds a 30% stake in an oil concession in Cuba. The 70% operating interest is held by Genoil, a unit of Beau Canada Exploration.
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