Spark Minerals Inc. completed the acquisition of Mongoose Mining Ltd. for CAD 3.2 million in a reverse merger transaction.
Completion of the transaction is subject to a number of conditions, including receipt of applicable third-party consents and regulatory approvals, including the approval of the board of directors of Spark and Mongoose, including, the approval of the Canadian Securities Exchange approval and receipt of applicable corporate approvals. The transaction is also subject to closing of private placement, shareholder approval of Mongoose and due diligence by both Mongoose and Spark. The shareholder meeting of Mongoose will be held on June 15, 2021. As of November 1, 2021, the transaction is expected to close by mid-November.
Trevor Wong-Chor of DLA Piper (Canada) LLP acted as legal advisor, MNP LLP acted as an accountant to Mongoose Mining Ltd. and Eric Roblin of Fogler, Rubinoff LLP acted as legal advisor to Spark Minerals Inc. in the transaction.
Spark Minerals Inc. completed the acquisition of Mongoose Mining Ltd. (CNSX:MNG) for CAD 3.2 million in a reverse merger transaction on November 10, 2021. As a result of the transaction Mongoose issued 26.904 million Mongoose Shares to the holders of common shares of Spark. In addition, 2,500,000 common share purchase warrants of Mongoose were issued in exchange for 2,500,000 common share purchase warrants of Spark. Finally, the 360,000 outstanding options of Spark will become convertible into 360,000 Mongoose Shares at a price of CAD 0.05 per share,120,000 of which have vested, 120,000 of which vest on September 30, 2022 and 120,000 of which vest on September 30, 2023. Finally, the 360,000 outstanding options of Spark will become convertible into 360,000 Mongoose Shares at a price of CAD 0.05 per share,120,000 of which have vested, 120,000 of which vest on September 30, 2022 and 120,000 of which vest on September 30, 2023. Following completion of the transaction, the Company has 31,950,299 common shares issued and outstanding of which the shareholders of Mongoose prior to the completion of the transaction and associated financings hold approximately 10.3%. As a result of the completion of the transactions, Technology Metals Inc. ("Technology Metals") received 13,006,993 Mongoose Shares which represents approximately 40.7% and 21Alpha Resources received 6,993,007 Mongoose Shares representing approximately 21.9% of the issued and outstanding Mongoose Shares. Prior to the closing of the transaction Spark and Mongoose closed non brokered private placements raising aggregate gross proceeds of CAD 1 million. On November 8, 2021, Mongoose received the conditional approval from the Canadian Securities Exchange (CSE) for the listing of the Mongoose Shares issued in connection with the transaction. Mongoose expects to recommence trading on the CSE on or before November 19, 2021 under the symbol MNG.