Duluth Metals Limited DM:CA and Franconia Minerals Corporation FRA:CA announced that they have entered into an arrangement agreement whereby Duluth will buy all outstanding Franconia common shares. Franconia shareholders will have the option to receive cash, Duluth shares or any combination of cash and Duluth shares with an aggregate maximum cash consideration of $37.9 million and an aggregate maximum of 13,841,304 Duluth shares.
In addition, Duluth and Franconia have entered into a subscription agreement pursuant to which Duluth has subscribed for and will purchase 3,906,250 common shares of Franconia in a private placement for total gross proceeds to Franconia of $2,500,000. The proceeds of the private placement will be used to fund a land purchase option with Minnesota Power, as well as for general working capital purposes.
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Duluth Metals Limited
Director of Corporate Communications
or Franconia Minerals Corporation
by Ted Niles