Harfang Exploration (TSXV: HAR) is acquiring LaSalle Exploration (TSXV: LSX) in an all-share deal that will combine Harfang’s Serpent and LaSalle’s Radisson projects in Québec’s James Bay Region.
Under the deal Harfang will acquire each share of LaSalle Exploration for 0.3908 of a Harfang share. After the transaction is completed, LaSalle shareholders will own about 35.5% of Harfang’s issued and outstanding common shares.
LaSalle CEO Ian Campbell will become president and CEO of the combined company.
The transaction will consolidate the contiguous exploration assets of LaSalle’s 5,000-hectare Radisson project and Harfang’s Serpent project in west-central Quebec’s Eeyou-Istchee-James Bay Territory.
The integration of the Radisson project will add 6 km of strike of potential mineralization to the Serpent gold-bearing structures, Harfang noted in a news release, adding that the transaction will solidify Harfang’s position as the largest mineral claim holder in the region with about 508 sq. kilometres.
Drill results released in November from the Radisson project included 4.29 metres grading 1.09 grams gold per tonne starting from 36.93 metres in drill hole LXR21-002 and 6 metres grading 3.01 gram gold per tonne starting from 186 metres in drill hole LXR21-012.
Drill results released in December from Harfang’s Serpent project included 8 metres grading 4.09 grams gold per tonne starting from 9 metres in drill hole SER-21-029 and 7 metres grading 4.33 gram gold per tonne starting from 50 metres in drill hole SER-21-035.
The two companies have drill-ready targets and plan to commence a 6,000-metre drill program on the Serpent-Radisson property.
The deal “is an excellent strategic and cultural fit for both companies, creating a far stronger platform that has already been embraced by the Quebec institutional funds,” André Gaumond, Harfang’s chairman, said in a press release.
The new Harfang will be larger, more relevant and benefit from the significant synergies unlocked by the transaction.”
In addition to Radisson, LaSalle’s other assets include the Blakelock project, located 60 km west of the Casa Berardi gold mine, owned by Hecla Mining (NYSE: HL), in northeastern Ontario’s Abitibi greenstone belt.
LaSalle also owns the Egan property in northeast Ontario and the Selbaie property in James Bay, Quebec.
At presstime in Toronto, Harfang was trading at 28¢ per share within a 52-week trading range of 22¢ and 62¢, while LaSalle was trading at 10¢ per share within a 52-week trading range of 8.5¢ and 22.5¢
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