Mako Mining Joined Forces with Goldsource Mines to Create Diversified Gold Producer

SEATTLE (Scrap Monster): Mako Mining Corp. has entered into an arrangement agreement with Goldsource Mines Inc., further to which Mako will acquire all of the issued and outstanding common shares of Goldsource in exchange for common shares of Mako. The deal will help Mako to expand into South America. Also, the acquisition will result in creation of a diversified gold producer.

The above transaction will combine Mako’s highly profitable Nicaraguan gold operations and mine-building team with Goldsource’s Eagle Mountain Gold Project in Guyana, South America. The combined company will enhance Mako’s current growth trajectory while creating a platform for rapid growth.

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The addition of the high-quality gold asset in Guyana is expected to boost Mako’s operating platform.

Upon completion of the transaction, the existing shareholders of Mako will own approximately 84% of Mako and the existing shareholders of Goldsource will own approximately 16% of Mako. Also, Wexford’s current ownership of Mako will be reduced from approximately 54.5% to approximately 45.6%.

The completion of the transaction is subject to approval of the Goldsource securityholders, TSXV and the British Columbia Supreme Court.