Great Quest Gold Ltd. announced that it has signed a final agreement on June 26, 2025, to acquire all the shares of Lotus Gold Corporation.
Under this deal, Lotus shareholders will get new Great Quest shares in exchange for their Lotus shares. The transaction will be carried out through a court-approved plan under the laws of British Columbia.
According to TSX Venture Exchange rules, this deal is considered a reverse takeover (RTO). After it closes, Lotus will become a wholly-owned subsidiary of Great Quest, which will then be known as the “Resulting Issuer.”
Lotus shareholders will receive enough shares in the new combined company to own 63.3% of it. Great Quest’s current shareholders will own 36.7% of the company.
Lotus will lend N$5.55 million (about $300,000) to Great Quest at an annual interest rate of 10%. If their merger deal doesn’t close by November 30, 2025, the loan can be converted into Great Quest shares at N$0.46 per share (before any share consolidation). Great Quest will use this money for its day-to-day expenses.
Great Quest also plans to complete additional Bridge Financing before the merger closes. This financing needs approval from the TSX Venture Exchange.
The board will comprise Jed Richardson, Heye Daun and Alan Friedman.
Richardson has 25 years of experience in mining and finance. He has worked as a mining engineer and research analyst, and held senior roles at several companies, including President & CEO of Trigon Metals. He joined Great Quest’s Board in 2010 and became Executive Chairman in 2024.
Daun is a mining engineer and entrepreneur who co-founded Osino Resources and Auryx Gold Corp., which sold a major gold project in Namibia for about N$2.96 billion (US$160 million). He has over 12 years of experience running public mining companies. He is a co-founder and Director of Lotus.
Friedman is a lawyer and public markets entrepreneur with over 20 years of experience in the field. He has helped many companies go public in Canada and the UK. He is also a director of Eco (Atlantic) Oil and Gas and a co-founder of Lotus.
Lotus holds exploration licenses covering about 1,930 km² in Egypt’s Eastern Desert. This includes ten original blocks and around 5.5 additional blocks acquired from B2Gold, for a total of roughly 11 blocks after renewals and adjustments.
Rate US$=N$18.50
