ValOre Proposes Acquisition of South Atlantic Gold for Expansive Precious Metals Project

Deal News | Feb 18, 2025 | Globenewswire

ValOre Proposes Acquisition of South Atlantic Gold for Expansive Precious Metals Project

In a strategic move aimed at expanding its precious metals footprint, ValOre Metals Corp. has proposed the acquisition of South Atlantic Gold Inc. as part of a plan to establish a nearly 100,000 hectare precious metals district in Ceara State, Brazil. The agreement, announced on February 18, 2025, involves ValOre acquiring all issued and outstanding shares of South Atlantic for 38.5 million of its own shares, valued at approximately CAD$2.7 million. This acquisition is expected to unite their adjacent Pedra Branca projects, with both companies unanimous in their support. This court-approved plan requires a simple majority vote from South Atlantic shareholders at an upcoming meeting. The completion of the transaction is anticipated in the second quarter of 2025, following necessary approvals and conditions. ValOre, under the Discovery Group, is poised to harness capital and expertise for advancement and innovation in this endeavor. Political and currency risks, among other business uncertainties, represent potential challenges. Both companies express optimism about the synergistic benefits for stakeholders and local communities, pending shareholder approval and regulatory compliance.

Sectors

  • Mining
  • Metals and Minerals

Geography

  • Brazil – The geographic focus of the acquisition is in the State of Ceara, Brazil, where the precious metals district is being developed.
  • Canada – Both companies involved in the acquisition—ValOre Metals Corp. and South Atlantic Gold—are based in Canada, influencing domestic corporate structures and market regulations.

Industry

  • Mining – The article discusses the acquisition of South Atlantic Gold by ValOre Metals to create a substantial precious metals district, specifically involving exploration and mining activities.
  • Metals and Minerals – Relevant as the combined assets and projects involve precious metals like gold, palladium, and platinum.

Financials

  • CAD$2.7 million – The approximate value of 38.5 million ValOre shares issued in the acquisition of South Atlantic Gold.

Participants

NameRoleTypeDescription
ValOre Metals Corp.Bidding CompanyCompanyA Canadian mining company focused on acquiring and advancing significant mineral projects, part of the Discovery Group.
South Atlantic Gold Inc.Target CompanyCompanyAn exploration company involved in mineral property acquisition and advancement, primarily in the Americas.
Jim PatersonChairman and CEO of ValOrePersonLed the announcement and strategic initiative to acquire South Atlantic Gold in order to consolidate projects.
Douglas MeirellesPresident & CEO of South AtlanticPersonSupports the transaction, highlighting the benefits to shareholders and communities.