- MAG Silver (MAG) to acquire Gatling Exploration Inc. (GTR)
- MAG will acquire all of the issued and outstanding common shares of Gatling in an all-share transaction
- Each Gatling shareholder will be entitled to receive 0.01702627 of a common share
- The consideration values Gatling at approximately C$0.40 per share, representing a premium of approximately 47.4 per cent
- The arrangement has been unanimously approved by the board of directors of both MAG and Gatling
- MAG Silver Corp. (MAG) is down 2.80 per cent, trading at C$22.94 at 12:37 pm EST
MAG Silver Corp. (MAG) has signed a definitive agreement with Gatling Exploration Inc. (GTR).
MAG will acquire all of Gatling’s issued and outstanding common shares in an all-share transaction.
Each Gatling shareholder will receive 0.01702627 of a common share of MAG for each share of Gatling held.
The consideration values Gatling at approximately C$0.40 per share, representing a premium of roughly 47.4 per cent to Gatling shareholders.
This is based on each company’s five-day volume-weighted average price (VWAP) as of the close of trading on March 10, 2022.
Gatling shareholders will hold approximately 0.79 per cent of MAG shares on an outstanding basis.
Gatling is a Canadian gold exploration company focused on advancing the Larder Gold Project, located in the prolific Abitibi greenstone belt in Northern Ontario, Canada.
The Larder project hosts three high-grade gold deposits along the Cadillac-Larder Lake Break, 35 km east of Kirkland Lake.
The project is 100 per cent owned by Gatling and comprises patented and unpatented claims, leases and mining licenses of occupation within the McVittie and McGarry Townships.
The 3,370 ha project area lies seven kilometres west of the Kerr Addison Mine.
All parts of the Larder property are readily accessible, and MAG expects to engage the existing exploration team.
“Gatling’s Larder property gives us a substantial toe hold and this regionally productive gold-bearing structure where we believe more gold should be findable,” said George Paspalas, MAG Silver’s President and CEO.
“We are very impressed with the geological abilities of the Gatling field team and look forward to applying some new takes on where mineralization occurs in Abitibi orogenic gold systems,” added Paspalas.
The board has unanimously approved the arrangement of directors of both MAG and Gatling.
Gatling’s directors and officers and Gatling’s largest shareholder have each entered into customary voting and support agreements.
They will vote in favour of the arrangement at the special meeting of Gatling security holders to be held to consider the transaction.
MAG Silver Corp. is a Canadian development and exploration company focused on becoming a top-tier primary precious metals mining company by exploring and advancing high-grade, district-scale, silver-gold dominant projects in the Americas.
Its principal focus and asset are the Juanicipio Project (44 per cent), developed with Fresnillo Plc (56 per cent), the operator.
The project is located in the Fresnillo Silver Trend in Mexico, the world’s premier silver mining camp. The operator is developing an underground mine and constructing a 4,000 tonnes per day processing plant.
MAG Silver Corp. (MAG) is down 2.80 per cent, trading at C$22.94 at 12:37 pm EST.