Pampa Metals and Rugby Resources Announce Binding Agreement for Merger
Vancouver, British Columbia, February 19, 2025 – In a significant move that is expected to create a leading player in the resource sector, Pampa Metals Corp. (CSE:PM, FSE:FIR, OTCQB:PMMCF) and Rugby Resources Ltd. (TSXV:RUG) have announced that they have executed a binding letter agreement, paving the way for Pampa Metals to acquire 100% of Rugby’s shares. This transaction, which is subject to regulatory approvals and other customary closing conditions, is expected to enhance the combined entity’s exploration portfolio and strengthen its financial position.
Key Terms of the Transaction
Under the terms of the agreement, Rugby shareholders will receive 0.12 of a common share of Pampa Metals for each Rugby share they hold. Based on the closing price of Pampa Metals’ shares on the Canadian Securities Exchange on February 18, 2025, this represents a premium of approximately 60% to the 20-day volume-weighted average price of Rugby’s shares.
Benefits for Pampa Metals
The acquisition of Rugby is expected to bring several benefits to Pampa Metals. These include:
- Expansion of Pampa Metals’ exploration portfolio: Rugby’s projects in Western Australia and Quebec will add significant value to Pampa Metals’ existing portfolio, which includes the La Paz project in Peru.
- Strengthened financial position: The acquisition is expected to result in a pro-forma market capitalization of approximately CAD 150 million, providing a stronger financial position to pursue growth opportunities.
- Enhanced technical expertise: Rugby’s team of experienced geologists and exploration professionals will bring valuable technical expertise to Pampa Metals.
Impact on Shareholders
The merger is expected to create value for shareholders of both companies. Rugby shareholders will receive a premium for their shares, while Pampa Metals shareholders will benefit from the expanded exploration portfolio and strengthened financial position.
Global Implications
The merger of Pampa Metals and Rugby Resources is not just significant for the companies involved but also for the resource sector as a whole. The combined entity is expected to become a leading player in the exploration and development of precious and base metals, contributing to the global supply chain and driving innovation in the sector.
Conclusion
The merger of Pampa Metals and Rugby Resources represents an exciting opportunity for both companies to create value for their shareholders and contribute to the global resource sector. With a strengthened financial position, expanded exploration portfolio, and enhanced technical expertise, the combined entity is well-positioned to pursue growth opportunities and drive innovation in the sector. We will continue to provide updates on the transaction as more information becomes available.
About Pampa Metals Corp.
Pampa Metals Corp. is a Canadian exploration company focused on the acquisition, exploration, and development of precious and base metal projects in Peru and Canada. The Company’s flagship project is the La Paz project in Peru, which hosts significant potential for the discovery of high-grade gold and silver deposits.
About Rugby Resources Ltd.
Rugby Resources Ltd. is a Canadian exploration company focused on the exploration and development of precious and base metal projects in Western Australia and Quebec. The Company’s flagship project is the Windima project in Western Australia, which has the potential to host significant deposits of nickel, copper, and platinum group elements.
