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Home > News > Harfang and LaSalle...

Harfang and LaSalle complete merger

Apr 14, 2022


Harfang Exploration Inc. and LaSalle Exploration Corp. have announced that they have completed their previously announced merger by way of a plan of arrangement under the Business Corporations Act pursuant to which Harfang has acquired all of the issued and outstanding common shares of LaSalle (the "LaSalle Shares") on the basis of 0.1813 common share of Harfang (on a post-consolidation basis) (the "Harfang Shares") for each LaSalle Share. Harfang also announces that it has implemented the previously announced consolidation of its common shares on a 2.1554 for 1 basis (the "Consolidation") following the approval of such Consolidation by the board of directors of Harfang as shareholder approval of same was not required under Harfang's governing corporate law. Following the completion of the Consolidation, the new CUSIP number for the Harfang Shares is 412379208. The transactions contemplated herein are expected to be effective at the opening of trading on the TSX Venture Exchange or around April 19, 2022.

This transaction consolidates the contiguous gold exploration assets of Lasalle's Radisson and Harfang's Serpent properties, James Bay Region, Québec, both of which will benefit from operational efficiency, synergies and a combined exploration strategy as the projects advance, along with an extensive portfolio of highly prospective exploration projects in Québec and Ontario. 

Transaction Highlights 

The transaction offers several positive direct benefits to the shareholders of Harfang and LaSalle, including, the following:

  • Highly qualified board and management team with a track record of success;
  • Approximately $10M in the treasury along with strong support from major Quebec Institutional Funds;
  • Improved exploration focus on the district-scale gold corridor found on the consolidated Serpent / Radisson property that covers a total surface area of 508.4 km2 in the James Bay district; 
  • An extensive portfolio of highly prospective exploration properties including Egan, Menarik, Menarik East, Lake Aulneau and Blakelock among others that offer significant potential to unlock shareholder value; 
  • Solid platform for further consolidation and growth opportunities. 

Ian Campbell, incoming President and CEO of Harfang, commented, "I am very excited about leading the team as we begin this new chapter of Harfang. We are uniquely positioned as a value focused explorer based on the wide range of skillsets and depth of talent that both management and the Board bring to the table. I look forward to reporting on our progress as we advance on multiple fronts on our existing portfolio and continue to establish ourselves as a premier growth vehicle. On behalf of Harfang, I wish to recognize the valuable contributions of management and board members of both LaSalle and Harfang not continuing on with us, all of whom have played an important role in achieving this platform and wish them every success going forward." 

Release of Proceeds of Subscription Receipts Financing

Upon closing of the Arrangement, the total gross proceeds arising from the previously announced $4.25 million private placement of subscription receipts conducted by Harfang were released from escrow and each subscription receipt of Harfang automatically converted into one (1) Harfang Share resulting in the issuance of 7,727,271 Harfang Shares. In addition, in connection with the closing of the Arrangement and as previously announced, Harfang has subscribed for 1,250,000 common shares of Monarch Mining Corporation, at a price of $0.60 per share, for a total amount of $750,000.

Board and Management

The Arrangement brings together a highly experienced team of mining industry professionals with the Board of directors, now composed of:

  • Jean-Pierre Janson as Chairman (current Chairman of Midland Exploration)
     
  • André Gaumond (former President of Virginia Mines)
     
  • Daniel Innes (founder and original CEO, Lake Shore Gold Corp.)
     
  • Ian Campbell (President and CEO of LaSalle)
     
  • Sylvie Prud'homme (former Manager, Investor Relations at Osisko Mining Corporation)
     
  • Karen Rees (former VP Exploration and Corporate Secretary at Temex Resources Corp.)
     
  • Vincent Dubé-Bourgeois (CEO of GoldSpot Discoveries Corp.)

In addition, the previously announced resignation of François Goulet as President and Chief Executive Officer of Harfang became effective and Ian Campbell was appointed as President and Chief Executive Officer of Harfang and Ron Stewart was appointed as Vice President, Corporate Development of Harfang. François Huot remains Vice President Exploration and Yvon Robert remains as Chief Financial Officer.

LaSalle Delisting

With the closing of the Arrangement, Harfang will have LaSalle delisted from the TSX Venture Exchange and LaSalle will request the appropriate securities regulatory authorities to revoke its reporting issuer status and terminate its reporting obligations.



Tags: Quebec / Deals & Financial / Gold / All Articles