SKRR Exploration Inc. is poised for a significant transformation, having announced a non-binding letter of intent to undertake a reverse takeover of Kenz Global Resources Ltd. This strategic move aims to combine the entities, with Kenz Global Resources becoming a wholly-owned subsidiary of SKRR. The anticipated transaction signals a major shift, promising to reshape SKRR’s operational footprint and market position within the global mining sector.
Under the terms of the proposed business combination, current shareholders of Kenz Global Resources are expected to hold a commanding 75% majority interest in the outstanding common shares of the newly formed company. Furthermore, upon completion, SKRR is slated for a significant rebranding, with the new entity potentially adopting the name “Saudi Minerals Corporation.” The resulting issuer is also anticipated to be listed as a Tier 2 – Mining Issuer on the TSX Venture Exchange, underscoring its commitment to the resource market.
Kenz Global Resources Ltd., a private company incorporated in British Columbia in 2019, brings a substantial and strategically vital asset portfolio to the table. Its primary focus lies in Saudi Arabia, where it owns and operates several key exploration blocks through its local subsidiaries. This includes a controlling 63% interest in the AM ARTI mineral exploration and development project, a cornerstone asset for the proposed combined entity.
The AM ARTI Project, spanning a significant 99 square kilometers, is strategically situated within the Afif Terrane along the Nabitah Suture Zone of the Arabian–Nubian Shield. This region is renowned for its geological potential, making the project highly promising for future mineral exploration endeavors. Critically, the AM ARTI project aligns seamlessly with Saudi Arabia’s ambitious Vision 2030 initiatives, which seek to diversify the nation’s economy and bolster its mining industry.
While the Letter of Intent outlines the principal terms, both companies are now set to negotiate and execute a definitive agreement, which will supersede the initial LOI. The proposed transaction may be structured as a share exchange, plan of arrangement, or amalgamation, contingent on detailed advice from legal and financial advisors. Successful negotiation and the fulfillment of all conditions are paramount for the completion of this substantial resource acquisition.
To facilitate Kenz Global Resources’ operations leading up to the transaction’s close, SKRR Exploration has agreed to provide a bridge loan. This financial commitment includes an immediate advance, with the potential for further funding totaling up to C$1 million, subject to TSXV approval. These funds are earmarked for essential operational expenses, including marketing efforts, exploration activities, audit and accounting fees, and the crucial preparation of a National Instrument 43-101 compliant technical report for the AM ARTI Project.
The governance structure of the resulting issuer will also see a significant shift, with the new board of directors comprising six members. Kenz Global Resources will nominate four directors, reflecting its majority ownership, alongside one nominee from Haywood Securities Inc., Kenz’s financial advisor, and one from SKRR. This new leadership composition underscores the strategic direction and anticipated operational synergy of the combined mining enterprise.
Completion of this complex transaction hinges on various critical closing conditions, including comprehensive due diligence, the delivery of a compliant technical report on the AM ARTI Project, and the submission of audited financial statements. Furthermore, all necessary regulatory and shareholder approvals, particularly from the TSX Venture Exchange and Kenz shareholders, must be secured. Trading in SKRR shares remains halted pending the thorough review and acceptance of documentation related to this reverse takeover.
This proposed reverse takeover represents a pivotal moment for both SKRR Exploration and Kenz Global Resources. By combining forces, the entities aim to leverage Kenz’s promising Saudi Arabian mineral assets and SKRR’s public market presence to create a formidable player in the global resource sector. Investors will be keenly watching as this potential “Saudi Minerals Corporation” seeks to capitalize on the rich geological potential of the Arabian–Nubian Shield, driving future growth and shareholder value.
