Eros Resources merges with Canadian mining rivals

The companies announced on Tuesday that Canadian small-scale gold mining company Eros Resources will merge with rivals MAS Gold & Rockridge Resources in order to develop copper & gold projects in Saskatchewan.

This Canadian province is home to copper mines as well as potash, uranium and other metal deposits.

The spot gold price has risen by about 29% this year, mainly due to expectations of rate cuts. Also, there is a demand for safe-havens amid increasing geopolitical tensions. Copper prices are also up on the back of long-term copper demand.

Eros will acquire Rockridge and MAS Gold shares it doesn't already own by issuing 0.375 Eros Common Shares to Rockridge shareholders, and 0.25 Eros Common Shares to MAS Gold holders.

After the merger closes, Eros investors will own approximately 42.37%, while MAS Gold shareholders and Rockridge shareholders will own 37.33% each.

The companies released a joint statement that said: "The combined company's portfolio is expected to give shareholders exposure to approximately 78,000 hectares in mineral claims. This will offer the potential for discovery of new minerals and attract larger strategic partners."

According to LSEG, Eros's market capitalization was C$4.4m ($3.26m) on Sept. 30.

(source: Reuters)