Today, after the bell, Gilla announced that it entered into a definitive agreement to acquire all the shares of Terra Merchant Resources Corporation (“Terra”), a private company incorporated in Canada. According to the press release, Terra has secured rights to a gold exploration property in Angola. The concession is located about 120 km north of Cabinda City, Angola and covers approximately 200 square kilometers.
As terms of the agreement, Terra shareholders will receive 1 share of Gilla common stock as well as one warrant for one half of one Gilla common stock exercisable for 6 months at $0.60 per common share. The maximum number of shares to be issued is 10 million, plus up to 5 million common shares from the exercise of warrants. Additionally, the companies stated that they will be using their best efforts to raise $350,000 for Gilla and $250,000 for Terra by the closing date.
“Gilla is moving according to our plans, acquiring diversified and promising mining assets in Africa,” said Georges Benarroch, president of Gilla. “Current global market conditions have basically stopped in their tracks and most junior resource companies will need to find ways of attracting investors when markets calm down. We shall continue to look for attractive African assets and count on our shareholders to support our operations.”
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