The Mugglehead technology roundup: merger and acquisition edition

Here are five companies playing the merger and acquisition game.

Heliostar Metals and Argonaut comes to terms on Aurea Mining acquisition

Argonaut Gold (TSX: AR) inked a binding purchasing agreement with Heliostar Metals (CSE: HSTR) to buy Aurea Mining on Monday.

Aurea is a subsidiary of Argonaut, which holds a 100 per cent indirect interest in the Ana Paula Gold Project. Heliostar also entered into an option agreement with Argonaut and its subsidiary, Compañía Minera Pitalla S.A. de CV, for 100 per cent interest in the San Antonio Gold Project. Both of these are in Mexico.

“Argonaut’s focus at this time is our cornerstone asset, the Magino mine in Ontario Canada that will transform the Company to a low-cost, intermediate producer.  This agreement allows Argonaut to potentially unlock value in two non-core Mexican assets and provides Argonaut with a very attractive upside for its shareholders,” said Larry Radford, president and CEO of Argonaut Gold.

Argonaut is a Canadian-based gold company involved in exploration, mine development and production of its primary assets in Mexico. These are the El Castillo mine and San Agustin, which form the El Castillo complex in Durango, Mexico. The company also is presently in the construction stage with its Magino project, as well as the advanced exploration stage in its Cerro del Gallo project.

Heliostar, in contrast, is a junior gold explorer with a portfolio of projects in Alaska and Mexico. The company’s flagship is the Unga Gold Project on Unga and Popof Islands in Alaska. The project hosts an intermediate sulfidation epithermal gold deposit on a district-scale property over 240 kilometers across the two islands.

Heliostar has full penetration into Mexico

Heliostar also owns three early stage epithermal projects in Sonora that are highly prospective for both silver and gold. Cumaro is in the El Picacho district while the Oso Negro and La Lola projects show strong potential for epithermal gold-silver mineralization.

The purchase agreement brings all the shares of Aurea Mining and by proxy, the title and permit to the Ana Paula Gold Project. In exchange, Argonaut gets a host of different items. These include a USD$10 million cash payment at closing, and another $2 million following the completion of a feasibility study, or July 1, 2024, whatever comes first.

Also, if the company gets an extension to the permits for the Ana Paul open-pit mine and gets a new underground mining permit, Heliostar gives over $5 million in shares divided by the volume weighted average closing price (VWAP) for the past ten trading days. Add to that an extra $3 million in cash when Heliostar announces a construction decision for the project, and another $2 million in optional cash or shares with the same VWAP conditions as before. Finally, when Heliostar actually starts commercial production, it pays Argonaut $5 million in cash and $3 million in cash or shares with the aforementioned VWAP conditions.

Irish Communications company Spearline focuses on user-experience with Callstat acquisition

Cork, Ireland based communication testing technology provider, Spearline, acquired Callstats analytics technology for WebRTC from 8×8 (NASDAQ:EGHT) for an undisclosed sum.

The acquisition will let Spearline use Callstats’ tech to provide software for testing and monitoring business telecommunications services for its clients. Spearline’s options give businesses the ability required to improve the customer’s experience. The deal adds to Spearline’s existing product suite, and comes directly after the company’s acquisition of Israeli-based communications software company testRTC in November of 2021.

WebRTC is an abbreviation of Web Real-Time Communication. It’s provides web browsers and mobile applications and real-time communication through application programming interfaces. It assists with audio and video integration inside webpages by allowing direct peer-to-peer communication. This eliminates the need for plugins or native apps.

What is 8×8?

The purpose is the development of RTC applications for the browser, mobile platforms and internet-of-things devices. This will allow them all to communicate using a shared set of protocols.

8×8 was founded in 1987 by Y.W. Sing and Chi-Shin Wang as Integrated Information Technologies. IIT started as a integrated circuit designer for the personal computer market during the late 1980’s. The name change to 8×8 came about in the mid-1990s as the company started servicing the video conferencing market.

Now it provides Voice over IP (VOIP) products, including cloud-based voice, contact centre, video, mobile and unified communications for businesses. It’s flagship project is the open-source VOIP program Jitsi, which its managed since 2018.


Read More: The Mugglehead technology roundup: merger and acquisition edition

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