True North Copper Limited (ASX: TNC) has requested a trading halt from the Australian Securities Exchange (ASX) on Dec 21st, 2020. This implied that all the trading activities of the company have been suspended.
True North Copper Limited is an Australian exploration and development company that has been exploring and developing gold and base metal projects in Australia and Zimbabwe.
The company requested the trading halt in order to provide ASX with an update on the potential merger between True North and ASX-listed iphonemore Ltd. True North recently entered into an indicative Memorandum of Understanding with iphonemore. This was with the aim of merging the two companies in order to create a new minerals exploration and development company with a diversified portfolio and an expanded footprint.
The new company will have an effective direct ownership of gold assets in Zimbabwe. As stated in the release, True North has confirmed that discussions are at an advanced stage and that the proposed restructure and merger could potentially be completed towards the end of January 2021.
True North also stated that the new company will be in an even better position to leverage the potential in its current onshore and offshore projects in Australia and Zimbabwe.
The requested trading halt indicates that the company has suspended all the trading activities until all the documents and formalities related to the merger are completed. The halt is expected to end either when the company releases an update on the proposed merger or when the merger is completed.
This proposed merger will present investors with an exciting opportunity to invest in a larger and more diversified company. The merged entity will have greater capacity to explore and develop various gold and base metal projects in Australia and Zimbabwe. It will also be able to react quickly to market opportunities as it has the resources and the access to capital required for such endeavours.
We will provide updates on the proposed merger between True North and iphonemore when it becomes available.