International Goldfields to merge US gold company

THE BOURSE WHISPERER: International Goldfields (ASX: IGS) has executed a Definitive Merger Agreement with United States-based Santa Fe Gold Corporation to merge the two companies, resulting in Santa Fe becoming a wholly-owned subsidiary of IGS.

IGS claims the proposed merged entity will be a diversified, well-funded and low cost gold-silver explorer, developer and miner, listed on the ASX and also traded on a major US exchange or on the OTC.

The combination will amalgamate projects located in New Mexico (USA), Arizona (USA) and Brazil.

“We are pleased to have reached this important milestone in the merger process and look forward to completing the transaction in the coming months and building a combined gold company with solid production, yet significant upside.” International Goldfields chief executive officer Travis Schwertfeger said in the company’s announcement to the Australian Securities Exchange.

Schwertfeger’s trumpeting of the new deal was echoed by Santa Fe president and chief executive Pierce Carson.

“The two companies have individually and collectively achieved a number of key advances in recent months, which in our view provides further evidence as to the exciting opportunities being created by this merger,” Carson said.

Both parties estimate the merger will be completed in the second calendar quarter of 2013.

While the regulatory matters related to the merger have been taking shape, IGS indicated both companies have been in discussions with a number potential off take/project financing partners to provide funding to the combined entity.

These discussions are now at an advanced stage and with the signing of the Merger Agreement they are expected to be concluded in the coming weeks.