West Perth-based base metals explorer Bellevue Resources Ltd has agreed to acquire junior gold-copper exploration company Meridian Minerals Ltd.
Both companies have entered into a heads of agreement with due diligence to be completed by the end of the week.
Approval from Bellevue shareholders will be sought by July 31.
Under the terms of the acquisition, Bellevue will issue 34 million shares and 31 million options at an exercisable price of 20c, expiring in early 2011, to Meridian. The issue represents around 50 per cent of Bellevue.
If the acquisition goes ahead, Bellevue will take on the Meridian name, with current Meridian chairman Ray Mille and managing director Jeremy Read to retain their roles.
Bellevue chairman Paul Niardone will be the sole Bellevue representative on the board.
The companies combined will bring together an asset portfolio consisting of gold and base metal projects in New South Wales, Queensland and South Australia.
Cornerstone investors include Teck Cominco Australia and Mithril Resources Ltd.
