Canadian junior Explorex Resources Inc (CSE:EX) (OTCMKTS:EXPXF) is heading into the holidays with a new look thanks to a strategic acquisition announced Monday afternoon.
The Vancouver-based company is acquiring Singapore’s Raffles Financial Private Limited, a diversified financial services company that provides advisory related to IPOs, investment management and counseling to high net worth individuals and families.
The acquisition represents a new direction for Explorex, which up until now has operated as a mineral exploration company.
READ: Explorex Resources makes key acquisition of historic Bonanza Mountain gold-copper project in British Columbia
Pending a name change to Raffles Financial Group and a corporate move from British Columbia to the Cayman Islands, Explorex said that it plans to spin out its mineral assets into a wholly owned subsidiary with the proposed name of EXCO Resource Inc. The subsidiary will apply to list on the Canadian Securities Exchange, according to a statement.
As for Raffles Financial, the revamped company will have offices in Sydney, Beijing and Hong Kong in addition to its Singapore headquarters.
The reverse takeover will come into effect after Explorex completes the spinout of its mineral assets. The company will consolidate its outstanding shares on a 23.78:1 basis, or such other number of pre-consolidation Explorex shares so that the consolidation results in 1,050,000 post-consolidation shares outstanding immediately before closing. Raffles’ existing shareholders will then be issued 45 million post-consolidation shares.
The financing is expected to result in 4 million post-consolidation shares being issued so that post-financing, a total of just over 50 million shares will be outstanding. Raffles’ shareholders will hold 89.9% of outstanding shares.
Completion is subject to a C$20 million financing, shareholder approval of the fundamental change and regulatory approval.
Explorex and Raffles Financial expect the transaction to close by March 16, 2020.
The junior mining company is focused on the acquisition of projects hosting elements critical to the efficiency of rechargeable batteries. With cobalt as its main focus, the company has prioritized projects in Finland and several Canadian jurisdictions with historic production.
Shares of Explorex closed at C$0.18 on Monday afternoon.
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