Northern Vertex (NEE.V) has announced a merger with Eclipse Gold Mining Corporation (EGLD.V).
“Our goal has been organic growth but also growth through consolidation. This merger offers the shareholders of Eclipse an opportunity to be part of a producing mine, a mine that has been actively developed and has transitioned from exploration through the production of the last half a dozen years,” said Ken Berry, CEO of Northern Vertex.
Eclipse Gold has announced a $20 million financing as part of this transaction.
“Northern Vertex financed about $125 million to date to develop the Moss Mine. This $125 million has all been non-brokered financed. So the Eclipse transaction, what that brings, is a new $20 million financing with 5 brokerage firms sponsoring that,” Berry said. “One of our goals is to be the lead consolidator of U.S. projects.”
The partnership with Eclipse Gold Mining gives Northern Vertex access to the Hercules project, which similar to the Moss Mine, is also situated on the Walker Lane Trend.
“It gives us two assets: one, a development project with Hercules, and we also have the Moss Mine which is producing cash flow, [we had] the most successful quarter to date, and we also have blue sky exploration potential with the project at the Moss Mine,” Berry said.
By David Lin