Cortona shareholders back Unity merger

Cortona Resources shareholders have thrown their overwhelming support behind a $25.6 million merger with Victoria's Unity Mining.

The new entity will be known as Unity Mining and will have a production profile of up to 100,000 ounces per year.

The new Unity will have a market capitalisation of around $95 million.

The merger will take place via scheme of arrangement, with Cortona shareholders to receive 0.734 Unity shares for each Cortona share.

“Unity in 2013 will be a very different company, with a production growth profile from Dargues Reef and Henty,” Unity managing director Andrew McIlwain said.

“There are few Australian gold companies which are fully funded, with a near-term growth profile to 100,000ozpa trading at an enterprise value of less than $50 million.

“With healthy cash reserves and likely moderate capital spend at Dargues Reef, we have a sound basis for generating good returns for the future.”

Cortona's stock last traded at 9.5 cents, before entering a trading halt prior to the shareholder vote.