Barsele Minerals Corp. (“Barsele”) and Gold Line Resources Ltd. (“Gold Line”) have entered into an arrangement agreement, marking a significant acquisition in the mining industry. This agreement, dated December 12, 2023, will see Barsele acquiring all issued and outstanding common shares of Gold Line in exchange for common shares of Barsele, creating a combined company with enhanced potential in gold exploration.

The transaction is a first for Barsele in the European market, with the advanced stage Barsele gold project being a cornerstone. This project, in partnership with Agnico Eagle Mines Limited (“Agnico”), is a significant draw for the merger.

Consolidating a Key Gold District

The merger is set to consolidate a substantial exploration portfolio in Sweden and Finland, creating a district-scale property package in the Gold Line Mineral Belt in Sweden, totaling over 104,000 hectares. It includes the Oijärvi gold project in Finland, presenting a standalone belt-scale opportunity for the Resulting Issuer.

Highlights of the Transaction

• The merger brings together Barsele’s advanced stage Barsele Project with Gold Line’s exploration portfolio, solidifying a significant license position in the Gold Line Mineral Belt.
• Barsele’s Project, with a substantial Indicated and Inferred resource, joins Gold Line’s flagship projects, Paubäcken and Storjuktan, located strategically around the Barsele Project.
• The combined exploration portfolio in Sweden, covering over 100 km of the structural corridor, is one of the largest license packages in Scandinavia.

Enhanced Portfolio and Leadership

The transaction’s synergies include cost efficiencies and optimized resources, aimed at efficient advancement of the combined assets. The Resulting Issuer will be led by an enhanced board and management team. Taj Singh, currently President and CEO of Gold Line, will become President and CEO of the Resulting Issuer, and Toby Pierce, currently Chair of Gold Line, will assume the role of Chair of the Resulting Issuer.

Gary Cope, President and CEO of Barsele, commented on the unique opportunity to create a leading gold company with a district-scale focus in Scandinavia. Singh noted the immediate re-rating and return potential for Gold Line shareholders through this merger.

Future Prospects and Transaction Details

Concurrent with the transaction, Barsele intends to undertake financing to raise approximately $1.0 million in a non-brokered private placement to fund exploration and corporate expenses. The transaction terms entail an exchange ratio of 0.7382 of a Barsele Share for each Gold Line Share. The Resulting Issuer will continue to be listed on the TSX Venture Exchange under Barsele’s name and ticker symbol.

The completion of the Transaction is subject to various conditions, including approval from Gold Line shareholders and the TSX Venture Exchange, among others.

  Barsele Minerals, Gary Cope, Gold Line Resources, Taj Singh