BlackRock Metals to merge with Strategic Resources
by CM staff
Upon completion of the transaction, BlackRock will become a wholly-owned subsidiary of Strategic.
VANCOUVER — Strategic Resources Inc. entered into a share exchange agreement with BlackRock Metals Inc., to which Strategic will acquire all of the outstanding shares in BlackRock for shares of Strategic.
The transaction will constitute a reverse takeover of Strategic. Upon completion of the transaction, BlackRock will become a wholly-owned subsidiary of Strategic. Strategic will continue to trade on the TSX Venture Exchange. The combined entity will create a leading critical minerals company in Tier 1 global mining jurisdictions.
“This Transaction is the third step in the company’s mission to add large-scale vanadium resources in Tier 1 global jurisdictions,” said Scott Hicks, Strategic Resources CEO and Director.
“The combination of these assets provides a path to being a globally significant producer and will help unlock value for shareholders. Our team is extremely excited to welcome BlackRock’s shareholders as large institutional shareholders and long-term partners of the Company.”
The transaction has been approved by the board of directors of both BlackRock and Strategic, and is subject to various closing conditions including approval of shareholders of Strategic, certain regulatory approvals, including clearance under the Competition Act (Canada), completion of the offering and approval of the TSXV.
Concurrently with the Transaction, the company will raise $14 million of equity through a private placement of $13.5 million of subscription receipts and $0.5 million of convertible debentures.
