The two-is-better-than-one asset trade between Sydney Resource (SYR-V) and Band-Ore Resources (BAN-T) has been turned into a conventional company merger, following consultations between the two companies’ boards.
The new deal is for Band-Ore shareholders to receive 0.9 of a share in a new company, West Timmins Gold, for each Band-Ore share they hold. Sydney shareholders trade share-for share and would hold 56% of West Timmins Gold.
The new company would have assets in the Timmins area and in the Sierra Madre in Mexico.
The tax burden the earlier deal would have placed on shareholders was the principal reason the companies reconsidered the asset trade. Band-Ore shares have been trading at a discount to Sydney shares since the merger was announced, and the merger deal reflects that change in prices.
The new deal is expected to go before shareholders of the two companies in August.
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