CHICAGO Waterloo 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 Waterloo said.
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.