01:46 PM EST, 12/10/2024 (MT Newswires) -- Borealis Mining ( BORMF ) on Tuesday said agreed to acquire Gold Bull Resources ( GBRCF ) for shares worth about $9.4 million. in a deal that will see current Borealis and Gold Bull shareholders own 86% and 14% of Borealis, respectively.

Borealis is offering 0.93 of a share for each Gold Bull share held, a premium of 86% above Gold Bull's 30-day volume-weighted average price.

The transaction is expected to close in the first quarter of next year.

According to the statement, the transaction delivers Borealis shareholders Gold Bull's "highly advanced and robust" Sandman project in Nevada, while delivering Gold Bull shareholders a significant premium.

"The Sandman project benefits from a great location close to Winnemucca, NV, strong historical and recent metallurgical results, a massive historical dataset, and robust proximal infrastructure," said Borealis chief executive Kelly Malcolm. "We look forward to rapidly advancing the project to production, especially in light of the sensitivity analysis of the 2023 PEA which shows very exciting economics at current gold prices."

Malcolm said the next steps for Sandman will be validation of historical metallurgical results, initiation of a Feasibility Study, and concurrent permitting.

Borealis was last seen down $0.01 to $0.68 on the TSX Venture Exchange, while Gold Bull Resources ( GBRCF ) has doubled to $0.49 from $0.245.

Price: 0.68, Change: -0.01, Percent Change: -1.45