The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
Enters agreement to become leading BC and Yukon explorer North of 60 Mining News – October 7, 2022
CAVU says the combined entity of Alpha and CAVU will become a leading copper exploration company with an expanded portfolio of prospective base and precious metals assets in BC and the Yukon.
CAVU Energy Metals Corp. Oct. 3 announced plans to merge with Alpha Copper Corp., a mineral exploration company with two promising copper projects in British Columbia.
Under the terms of the agreement, CAVU shareholders will receive 0.7 shares of Alpha for each CAVU share held, which represents a 31.3% premium for CAVU shareholders based on each company's respective 30-day volume-weighted average price.
The value of the consideration was calculated as C33 cents per CAVU share, and upon completion of the transaction, CAVU shareholders will hold roughly 30% of the outstanding Alpha shares.
This proposed all-shares buyout has the full endorsement of the board of directors of both CAVU and Alpha.
"The board of CAVU is pleased to enter into this milestone agreement and unanimously supports the transaction," said CAVU Energy Metals Director Danny Matthews. "The merged company will have premier assets of scale and regional focus that will benefit shareholders of both CAVU and Alpha."
For Alpha, the merger will add two promising exploration assets to its portfolio – the road-accessible Hopper copper-gold-silver-molybdenum project in southern Yukon and the Star porphyry copper-gold project in BC's Golden Triangle.
Alpha is particularly interested in the latter.
"This agreement is an opportunity to strengthen our grip on a portfolio of quality copper assets in Western Canada," said Alpha Copper CEO Darryl Jones. "The Hopper and Star projects present large upside for continued development. The Star property in particular has historical exploration indicative of a copper-gold porphyry deposit at depth and has multiple untested targets."
Upon receiving guidance from its advisors, including a fairness opinion from Evans & Evans, Inc., CAVU has unanimously determined that the transaction is in the best interests of the company and will recommend CAVU securityholders to vote in favor of the acquisition.
"We believe the transaction will create a continued platform for growth and look forward to building to the success of Alpha," said Matthews.
Completion of the transaction with Alpha will require at least two-thirds of CAVU shareholder approval. A special meeting to vote on the proposed all-shares buyout will be held in November.
Upon closing, CAVU will appoint a nominee to the board of Alpha.
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