Barsele acquires Gold Line to create leading gold company with district-scale focus in


(Kitco News) – Gold explorer Barsele Minerals (TSXV: BME) announced Wednesday it will acquire all of the issued and outstanding common shares of fellow gold explorer Gold Line Resources (TSXV: GLDL) in exchange for common shares of Barsele.

In a statement, the company said the transaction will create a combined company with a leading gold portfolio underpinned by the advanced stage Barsele gold project in Sweden currently being advanced by Barsele in partnership with Agnico Eagle Mines.

Barsele added the transaction will consolidate a “large and prospective” gold exploration portfolio in Sweden and Finland, including a district-scale property package situated on the prolific Gold Line Mineral Belt in Sweden, totalling over 104,000 hectares, and the Oijärvi gold project located in the Oijärvi Greenstone Belt of Finland.

Pursuant to the terms and conditions of the arrangement agreement, the holders of the issued and outstanding Gold Line shares will receive 0.7382 of a Barsele share for each one Gold Line share held immediately prior to closing of the transaction.

Upon completion of the transaction, the resulting issuer will continue to be listed on the TSX Venture Exchange under the existing name and ticker symbol of Barsele.

According to Barsele, excluding shares that will be issued in connection with the concurrent private placement at closing, existing shareholders of Barsele will own approximately 80% of the resulting issuer’s outstanding shares and existing shareholders of Gold Line will own approximately 20% of the resulting issuer outstanding shares on an undiluted basis.

Pursuant to the arrangement agreement and subject to satisfying all necessary conditions and receipt of all required approvals, the parties anticipate completion of the transaction in February 2024.

Barsele’s main property is the Barsele gold project in Västerbottens Län, Sweden, a joint venture with Agnico Eagle. The Barsele project lies in the heart of the Gold Line Mineral Belt with an open pit and underground indicated resource of 324 koz gold and an inferred resource of 2.086 Moz gold.

Gold Line is focused on acquiring gold mineral properties in Sweden and Finland. Gold Line’s Swedish projects are located in the Gold Line Mineral Belt and Skellefteå Belt of north-central Sweden and the Mjøsa-Vänern Belt in the southwest. In Finland, Gold Line holds the entire underexplored Oijärvi Greenstone Belt located in the north of the country.

The Oijärvi project includes the Kylmäkangas gold-silver underground deposit with an indicated resource of 159 koz AuEq grading 4.6 g/t AuEq and an inferred resource of 152 koz AuEq grading 2.9 g/t AuEq.

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