CAS has high quality gold assets but needs cash to develop them....

CAS has high quality gold assets but needs cash to develop them. Stratex can't match these quality gold assets but has lots of spare cash ($12M). So CAS has the quality assets and Stratex brings cash to the table.

The merged entity will be 81% CAS and 19% Stratex.
So Stratex is buying up 19% of CAS assets for $12M cash (reverse take-over).

I think the merged company will mainly use this $12M cash to get the smaller high-grade Juarena gold mine operational and cash-flow positive. Should the gold price continue improving, they should be in a good position to get the larger Borborema into production as well.