Resources Ltd. has agreed to buy all outstanding shares of
Lowell Copper Inc. in a reverse takeover.
The acquisition of shares will
cost approximately C$30 million ($29.2 million), with C$5
million ($4.9 million) of financing available at closing,
Waterloo chief executive officer Marcel de Groot told
AMM Feb. 25.
The combined company is expected
to change its name to Lowell Copper Ltd., with Lowell Copper
Inc. founder, president and chief executive officer J. David
Lowell serving as chairman and chief executive officer,
Waterloo said Feb. 25. De Groot will serve as president of
Lowell Copper, he said.
The reverse takeover is expected
to be completed by the end of June, pending court, regulatory
and shareholder approval, Vancouver, British Columbia-based
Lowell Coppers primary
asset is a copper-molybdenum porphyry property in Ecuador,
Waterloo said. Lowell Copper has also inked a deal to acquire a
copper exploration project in Chile, the company said.
Waterloo expects that David De
Witt, a director and corporate secretary of Lowell Copper and
founder and chairman of Vancouver-based private equity firm
Pathway Capital Ltd., will join the combined companys
board of directors. Catherine McLeod-Seltzer, a shareholder of
Lowell Copper, director of Toronto-based Kinross Gold Corp.,
and chairwoman of Vancouver-based Bear Creek Mining Corp. and
Pacific Rim Mining Corp., is also expected to join the board,
the company said.
J. David Lowell previously
founded Arequipa Resources Ltd., which was acquired by
Toronto-based Barrick Gold Corp., and Peru Copper Inc., which
was acquired by Beijing-based Aluminum Corp. of China
(Chinalco), Waterloo said.