Northern Vertex Mining Corp. and Eclipse Gold Mining Corp. plan to merge in an all-share transaction, creating a new gold growth resource business focused on the western United States. The combined company will be comprised of 71% Northern Vertex shareholders, 18% Eclipse shareholders and 11% new shareholders. Northern Vertex will be the resulting company with offices in the U.S. and Canada.
Northern Vertex owns and operates the Moss mine, currently the largest pure gold and silver mine in Arizona. Eclipse Gold Mining is exploring the Hercules gold property within Nevada’s Walker Lane trend.
“The result of this transaction will be a combined company with a greatly strengthened balance sheet, and an enhanced team with extensive experience growing multi-asset gold companies,” Northern Vertex President, CEO and Director Kenneth Berry said. “This represents a significant step toward our unwavering vision of building a top of the class midtier gold producer. We plan to use this new platform to accelerate organic growth opportunities by targeting significant resource expansion at the Moss mine and execute an aggressive roll-up strategy focused on the western United States.”
Eclipse President, CEO and Director Michael G. Allen said shareholders will now own two Walker Lane gold projects with multimillion-ounce potential, “a producing mine with untapped production and cash-flow growth opportunities, and an executive team with demonstrated success building multi-asset companies organically and through M&A.”
The management team will be comprised of President and CEO Kenneth Berry, CFO David Splett, Executive Vice President of Corporate Development Michael G. Allen, and Dr. Warwick as vice president of exploration. Shareholders of Eclipse will receive 1.09 shares in Northern Vertex for each Eclipse share. The transaction has been unanimously approved by the board of directors of both Northern Vertex and Eclipse.