03:33 PM EST, 02/18/2025 (MT Newswires) -- ValOre Metals ( KVLQF ) moved Tuesday to acquire South Atlantic Gold ( JLRRF ) . Although the transaction will combine the two companies' projects in Brazil, both called Pedra Branca, to create a near 100,000 hectares precious metals district, shares in both parties have edged lower.

Under the terms, ValOre will issue 38.5 million shares, valued at about C$2.7 million, to South Atlantic Gold ( JLRRF ). A definitive agreement is expected to be signed by Feb. 28. South Atlantic will delist from the TSX Venture Exchange after the transaction is completed.

"Bringing together these two parallel and adjacent projects is long overdue, as they share so much related to geology, infrastructure, communities, government stakeholders, project access, amenities and services," said Jim Paterson, ValOre Chairman and chief executive.

"In addition, ValOre's highly-trained local exploration team has undertaken a detailed review of the SAO license package and has identified high priority targets in known mineralized zones along this 50 km long gold belt located, literally, across the highway from our Pedra Branca palladium / platinum project."

The company's shares were last seen down $0.01, to $0.07, on the TSX Venture Exchange.

Price: 0.07, Change: -0.01, Percent Change: -7.14