- Arizona Gold (AZG) and Golden Predator announce the consolidation of near-term gold production in North America
- All of the issued and outstanding common shares of Golden Predator will be exchanged for common shares of Arizona on the basis of 1.65 common shares of Arizona per common share of Golden Predator
- Existing Arizona and Golden Predator shareholders will own approximately 55 per cent and 45 per cent of the combined company common share
- Golden Predator is advancing the past-producing Brewery Creek mine towards a timely resumption of mining activities in Canada’s Yukon
- Arizona Gold (AZG)is down 4.17 per cent and is trading at C$0.12 at 11:30 am ET
Arizona (AZG) and Golden Predator Mining Corp. have agreed to merge, creating a new North American-focused near-term gold producer.
The transaction combines the fully permitted past-producing Copperstone gold mine in Arizona and the historic past-producing Brewery Creek gold mine in the Yukon.
Under the terms of the agreement, all of the issued and outstanding common shares of Golden Predator will be exchanged for common shares of Arizona on the basis of 1.65 common shares of Arizona per common share of Golden Predator.
Upon completion of the transaction, existing Arizona and Golden Predator shareholders will own approximately 55 per cent and 45 per cent of the combined company common shares, respectively, on an outstanding basis.
Some transaction highlights of the company are how it plans to create a diversified near-term gold producer in North America through sequential development of the fully permitted Copperstone mine in Arizona.
Another highlight is improved capital markets scale to enhance investor visibility and positioning amongst peers, plus a broadened shareholder base.
Giulio Bonifacio, CEO & Director of Arizona, commented,
“We view this as a great opportunity to bring together the advanced-stage Copperstone Mine and the Brewery Creek Mine, both former producing gold mines in superior jurisdictions, under the same umbrella to leverage a shared technical team and corporate infrastructure.”
William Sheriff, Executive Chair of Golden Predator, further added,
“I have long been aware of and admired the Copperstone project, from its days as an open-pit mine to its current incarnation as an underground operation.”
The agreement includes standard deal protection provisions, including non-solicitation, right-to-match, and fiduciary out provisions, as well as certain representations, covenants and conditions that are customary for a transaction of this nature, along with a reciprocal termination fee of $1.5 million payable in certain circumstances.
Arizona Gold is an emerging American gold producer advancing the restart of production at its 100 per cent owned, fully permitted, past-producing Copperstone mine project, located in mining-friendly Arizona.
Golden Predator is advancing the past-producing Brewery Creek mine towards a timely resumption of mining activities in Canada’s Yukon.
Arizona Gold (AZG)is down 4.17 per cent and is trading at C$0.12 at 11:30 am ET.