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Sun Metals and Serengeti Announce Merger and Concurrent $9 Million Financing


On November 30, 2020, Sun Metals Corp. and Serengeti Resources Inc. entered into a definitive arrangement agreement pursuant to which Serengeti will acquire all of the issued and outstanding shares of Sun Metal on the basis of 0.43 common shares of Serengeti for each Sun Metals share held, by way of a plan of arrangement under the Business Corporations Act (British Columbia).

Concurrent with the merger, Sun Metals entered into an agreement with PI Financial Corp. and Haywood Securities Inc. as co-lead underwriters, on behalf of a syndicate of underwriters, in connection with a bought deal private placement of 72,000,0000 subscription receipts at a price of $0.125 per subscription receipt for gross proceeds of $9 million.

Cassels is acting for Sun Metals with a deal team that includes Jeff Durno, David Hansford and Sam Chapman (Securities, M&A and Mining) and Chris Norton and Tera Li Parizeau (Tax).

RELATED EXPERTISE: Securities | Mergers & Acquisitions | Mining | Taxation