Saturday 1st October 2016

Resource Clips



Duluth to buy Franconia Minerals for $40M

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.

View Company Profile

Contact:
Duluth Metals Limited
Mara Stazdins
Director of Corporate Communications
416.369.1500

or Franconia Minerals Corporation
Greg Taylor
905.337.7673

by Ted Niles

Share |

View All: News Stories