01:54 PM EDT, 06/05/2024 (MT Newswires) -- Miata Metals (MMET.CN) said Wednesday it signed a non-binding letter of intent to acquire rival junior miner 79North (JQ.CN) for shares currently valued at $3.6 million.

79North currently holds an interest in the 21,929-hectare Sela Creek gold project and the 21,076-hectare Nassau gold project. The projects are located in southern Suriname and within the Marowijne Greenstone Belt.

Under the letter of intent, Miata will issue 9-million shares to 79North shareholders in exchange for 100% of its outstanding shares.

Miata plans to complete a concurrent financing of up to $1.5 million in a non-brokered private placement of five-million share units priced at $0.30 and made up of a share and one half of a two-year warrant to buy a second share for $0.50.

As part of the proposed purchase, Miata will provide a secured bridge loan to 79North of $200,000. 79North will use the loan to cover its transaction costs and settle all outstanding liabilities before closing. The bridge loan will be payable upon completion of the private placement.

Miata will issue 1 million common shares to an arm's length finder as part of the deal at closing.

The company's shares were last seen up $0.055 to $0.40 on the Canadian Securities Exchange

Price: 0.40, Change: +0.06, Percent Change: +15.94