Miata Metals Corp. and 79North Inc. have announced a definitive agreement for Miata to acquire all of the issued and outstanding shares of 79North in an all-share transaction. This transaction marks a significant milestone for Miata as it expands its asset portfolio by adding two prospective gold properties.
Under the terms of the agreement, Miata will acquire 100% of the shares of 79North through a three-cornered amalgamation. The transaction is subject to approval by 79North shareholders at a special meeting expected to be held in September 2024.
79North currently holds an interest in the Sela Creek gold project and the Nassau gold project, both located in Suriname, South America. These projects are situated along the Marowijne Greenstone Belt, part of the Guiana Shield, which is known for its highly prolific gold endowment. Suriname, despite being relatively under-explored compared to other regions, is home to multiple producing gold mines and mature development projects.
Miata’s CEO, Dr. Jacob Verbaas, expressed excitement about the exploration opportunities and potential of the 79North assets. He believes that the systematic exploration of Sela Creek and Nassau will unlock significant shareholder value. Sela Creek, with its extensive surficial mining exposure, is seen as an excellent analog to other successful discoveries within Suriname. Nassau, located near Newmont’s Merian Mine, has shown promising intercepts in historic work.
The transaction will see Miata issue 9,000,000 common shares to 79North shareholders. Assuming no further issuances of Miata shares, 79North shareholders will own approximately 21.2% of the combined entity. The exchange ratio will be calculated based on the number of 79North shares issued and outstanding at the closing of the transaction.
Miata’s acquisition of 79North positions the company as a multi-asset explorer in Suriname, with two projects covering over 40,000 hectares. The favorable permitting environment, year-round access, in-country analytical laboratory, and availability of labor in Suriname create a positive mineral exploration environment.
This transaction highlights the potential for bottom-quartile exploration and drilling costs in Suriname, as well as the opportunity for significant gold endowments in an underexplored region. Miata is confident that the acquisition of 79North will bring substantial benefits to its shareholders and further enhance its presence in the South American mining sector.