(MENAFN- ProactiveInvestors - Australia) International Goldfields' (ASX: IGS) and Santa Fe Gold Corporation (OTCBB: SFEG) have progressed their relationship to the next level having now entered into a definitive merger agreement.
The merger, which is slated for completion in the June quarter of 2013, will see the two entities merge and Santa Fe become a wholly owned subsidiary of International Goldfields.
The merger could potentially vault International Goldfields into a producer, with the merged entity to have access to a diversified portfolio of tenements across West Africa, Brazil and southwest U.S.
Once combined, the merged company will have an initial market capitalisation of about $70 million with a cash position of A$10 million, and a low cost gold and silver production base of 28,000 ounces per annum of gold equivalent.
International Goldfields will also gain access to massive copper-gold upside from Santa Fe's Ortiz deposit of 1 million ounces of gold and 40.6 million pounds of copper.
Additionally, Sante Fe has been in discussions for some time with potential finance/offtake partners.
These discussions are now at an advanced stage and with the signing of the merger agreement they are expected to be concluded in the coming weeks.
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