Rackla Metals’ Acquisition of Misisi Gold Project

Torys LLP is representing Golden Mining on the deal.

On May 5, 2021, Rackla Metals Inc. announced that it entered into an agreement with Golden Mining Ltd. to acquire a 73.5% interest in the Misisi Gold Project located in the Democratic Republic of the Congo (“DRC”). The Project is comprised of three contiguous 30-year mining leases, valid until 2045, covering 133 square kilometres of highly prospective exploration ground along the 55-kilometre-long Kibara Gold Belt. 

Rackla has entered into a share purchase agreement to acquire all of the issued and outstanding shares from Golden Mining, an arm’s length vendor. The Project is owned by Leda Mining Congo SA, of which Casa Mining Limited owns a 73.5% interest, with the remaining interest in Leda being held by MMG Limited owning 21.5% (participating interest) and the DRC Government owning a 5% free-carried interest. Golden Mining has entered into a share purchase agreement with Golden Square Equity Partners Limited to acquire 99.43% of the outstanding shares of Casa Mining.

Under the terms of the Casa Mining SPA, Golden Mining is acquiring the outstanding shares of Casa Mining for total cash consideration of US$4.8 million in staged cash payments. Under the Definitive Agreement, Rackla will acquire Golden Mining through the issuance of up to 11.0 million common shares of Rackla at a deemed price per share of C$0.40, and will assume the obligation to make the required payments under the Casa Mining SPA.

Rackla Metals is a mineral exploration company that is part of the Gold Group of Companies.

The Torys team included Janan Paskaran (Picture), Ian Gordon and Jon McDonald (corporate/M&A).

 

Involved fees earner: Ian Gordon – Torys LLP; Jon McDonald – Torys LLP; Janan Paskaran – Torys LLP;

Law Firms: Torys LLP;

Clients: Golden Mining Ltd. ;

Author: Martina Bellini