09:22 AM EDT, 03/26/2024 (MT Newswires) -- Mako Mining Corp. ( MAKOF ) and Goldsource Mines Inc. ( GXSFF ) on Tuesday entered into an arrangement agreement, pursuant to which Mako will acquire all of the issued and outstanding common shares of Goldsource (GXS.V), in exchange for common shares of Mako, by way of a plan of arrangement.

According to a statement, the transaction will create a company that will combine Mako's "highly profitable" Nicaraguan gold operations and mine-building team with Goldsource's 100% owned Eagle Mountain Gold Project in Guyana, South America.

Tuesday's statement said: "The combined company will bring together an experienced management team, proven in the construction and operation of scalable mines with low capital intensity profiles, and who have discovered new precious metal deposits across multiple jurisdictions over the last two decades. The new Mako will have the cash flow, project pipeline, proven management team, and district-scale exploration potential that will enhance Mako's current growth trajectory while creating a platform for rapid growth."

Among transaction terms, pursuant to the terms and conditions of the arrangement agreement, the holders of the issued and outstanding Goldsource shares will receive 0.2200 of a common share of Mako for each Goldsource Share held. Goldsource stock options that are outstanding immediately prior to completion of the transaction shall immediately vest and be exchanged for replacement options of Mako exercisable to acquire Mako Shares in accordance with the Exchange Ratio. Outstanding warrants of Goldsource will become exercisable, based on the Exchange Ratio,to purchase Mako Shares on substantially the same terms and conditions.