Sign in Subscribe
Petroleum

Thunderwood and Joutel Announce Proposed Merger of Two Companies

Strategic Insights

— 1 min read

Thunderwood Resources Inc. ("Thunderwood") and Joutel Resources Limited ("Joutel") have agreed in principle to a proposed merger, where each shareholder of Thunderwood and Joutel will receive one common share of the merged company for each six shares held. The merger is intended to create a larger and financially stronger mining exploration company, better equipped to attract investment funds and reduce operating expenses. The respective Boards of Directors believe that the merger will result in an enhanced capability to explore and develop existing properties, as well as acquire new properties of merit.

Key Takeaways:

  • The proposed merger involves Thunderwood and Joutel shareholders exchanging 1 common share of the merged company for each 6 shares of either company held.
  • Aur Resources Inc. has agreed to subscribe for $1,000,000 of flow-through shares of the merged company at market price following completion of the merger.
  • The merged company will have approximately 21,981,837 common shares outstanding, with 37% held by former Thunderwood shareholders and 63% held by former Joutel shareholders.
  • Key leadership positions include John B. Heslop as President and CEO, Hugh D. Harbinson as Managing Director, James W. Gill as Chairman, and Charles E. Page, John M. Arnold, and Peter McCarter as directors.
  • Susan Smith will become Corporate Secretary of the merged company.
  • Principal assets of the merged company include interests in various base metal and gold properties in Quebec, Ontario, and Saskatchewan, with inferred resources totaling 54,375,988 tonnes grading 2.11 g/t Au.

Statistics:

  • 21,981,837 common shares outstanding in the merged company
  • 37% of shares held by former Thunderwood shareholders and 63% held by former Joutel shareholders
  • $1,830,800 in market value of Queenston Mining Inc. common shares currently held by Joutel
  • 327,230 tonnes grading 7.14 g/t Au at the Owl Creek West gold property in Timmins, Ontario
  • 1,640,408 tonnes grading 8.81 g/t Au at the Vogel gold property in Timmins, Ontario
  • 540,250 tons grading 0.25 oz./ton Au at the Pelletier Lake gold property
  • 7,400,000 tonnes grading 1.24 g/t Au and 5.87 g/t Ag at the La Zona Barita gold deposit in Cuba

Sources:

  • Thunderwood Resource (TSE:THS.)
  • Joutel Resources Lim (TSE:JTL.)
  • Aur Resources Inc.
  • Toronto Stock Exchange
  • Business Wire (June 30, 1998)

Read more