Tyhee Gold Corp (TSXV:TDC) announced Thursday that that it has entered into an agreement with Santa Fe Gold (OTCMKTS:SFEG) whereby Tyhee will acquire all of Santa Fe’s issued and outstanding shares in exchange for securities of Tyhee. The new company will be named Tyhee Gold. Santa Fe Gold jumped 23 percent on the news.
As quoted in the press release:
Santa Fe currently holds a number of precious metals properties in New Mexico, USA, including the Summit gold mine, which began commercial production in 2012 before mining activities were suspended in November 2013, primarily due to operational challenges brought on by capital constraints.
The board of directors of [Tyhee] has concluded that, following a significant restructuring of Summit’s operations, mine plan and debt position — including a cash injection estimated at US$19 million by Tyhee after completion of the Transaction into the Summit Mine and Santa Fe’s wholly owned Lordsburg Mill — the mine and mill can be re-started in 2014, with further production expansions scheduled to be implemented over the subsequent several months.