Canadian Zinc and Paragon Minerals plan merger
Paragon Minerals and Canadian Zinc have revealed they intend to merge.
Paragon Minerals Corporation and Canadian Zinc Corporation have revealed they have gone into a binding merger agreement.
Merger and acquisition consultants could help to finalise the tie-up, which is set to create a precious metals and premier base development and exploration firm with a number of mines in certain established Canadian districts.
It will open up access to a well-established mining location for Canadian Zinc and is expected to provide it with significant opportunities to grow its revenues.
The tie-up will involve Canadian Zinc acquiring all of Paragon's outstanding common shares in exchange with its stocks at a ratio of 0.136 of a Canadian Zinc share for each Paragon share.
Chief executive officer and chairman of Canadian Zinc John Kearney said the deal is consistent with his firm's strategy.
It "represents an excellent value opportunity for shareholders of both companies", he declared, adding it should be a "major step forwards" for his business.
Posted by Ken Hayes
Source: Canadian Zinc press release, July 31st