Should the business combination go through, UTMI shareholders would receive around 25 million of a new class of common shares of Wedge in exchange for all UTMI securities.
UTMI has a 100-per-cent interest in a 9,620-hectare property in Mongolia, called Undur Tolgoi, around 100 kilometres away from a major copper and gold mine, but the release did not disclose what minerals UTMI is seeking there.
The transaction is still pending a number of approvals:
- Being able to consolidate Wedge's current shares at a 20:1 basis;
- "Disinterested" approval of Wedge shareholders;
- Government, regulatory and CNSX approvals.
The two sides signed a non-binding letter of intent to complete a definitive agreement by July 8.
Wedge completed a $350,000 private placement in November with Firebird Global Master Fund II Ltd, and garnered an additional $400,000 in funding that July.
The junior mining firm announced intent of a major acquisition last summer of a private oil and gas explorer with assets in the Middle East, around the same time that former chief executive Robin Dow resigned. Conflicting stories came out about his resignation.
Its website has remained a placeholder for several months, with no listings for properties or target mining markets.