Bermuda's Continental Gold Ltd. is set to acquire Canadian junior mineral explorer Cronus Resources Ltd. through a reverse take over, according to a report by The Canadian Press.

Cronus shareholders will own a 13-percent stake in the amalgamated company after the all-stock deal, which is valued at $75 million.

Those holding convertible securities of Toronto-based Cronus and Continental will get equivalent securities in the merged company adjusted to account for changes to share capital.

The transaction still needs regulatory and shareholder approval and the completion of a financing to raise gross proceeds of at least $10 million. The terms of the financing have not yet been determined.

If requested by Continental, a convertible loan of between $2 million and $3 million will be made available by a third party lender. The loan would automatically convert to units of the amalgamated company on closing.

Cronus is a mineral exploration company focused on projects in Latin America. Continental is a private gold exploration company with seven projects in Colombia. Its flagship project is Buritica in the Antioquia department.