- MegumaGold Corp (CSE:NSAU) is still negotiating its business combination with Osprey Gold Development (TSXV:OS), which was announced three weeks ago
- Through the asset combination, MegumaGold would acquire all issued and outstanding shares in Osprey, in exchange for an equal value amount of MegumaGold shares
- In an update released today, MegumaGold stated that both companies remain committed to the deal but are still finalising an agreement
- MegumaGold hopes that combining the two companies’ Nova Scotia assets will give a competitive edge in the region
- MegumaGold Corp (NSAU) is down 10.0 per cent, with shares trading for C$0.14 and a market cap of $13.1 million
- Osprey Gold Development (OS) is up 11.11 per cent, with shares trading for 5 cents and a market cap of $3.5 million
MegumaGold Corp (CSE:NSAU) is still negotiating its business combination with Osprey Gold Development (TSXV:OS), which was announced three weeks ago.
In an update released today, the company stated that both companies remain committed to the deal but are still finalising an agreement.
Through the deal, MegumaGold would acquire all issued and outstanding shares in Osprey, in exchange for an equal value amount of MegumaGold shares. However, until negotiations conclude, the exact terms of the deal remain uncertain.
It was Osprey’s land holdings in Nova Scotia that motivated MegumaGold to proffer the deal. Osprey is currently developing the Goldenville and Caribou projects in the province.
These properties would strengthen MegumaGold’s portfolio in the region, where it currently holds around 100,000 hectares of land across the province’s mining districts.
MegumaGold has been eager to acquire more land in Nova Scotia, since St Barbara Ltd purchased an adjacent plot in the region from Atlantic Gold for C$722 million last year.
With this in mind, President of MegumaGold, Theo Van der Linde, believes that the proposed combination would give the companies a competitive edge in the region.
“We believe this consolidation of assets is the logical step in building a company optimally positioned to capitalize on the upside of the developing gold camp in Nova Scotia.
“The combination of MegumaGold’s commanding land position and Osprey’s deposits creates a combined entity that would represent critical mass Canadian gold and exploration opportunity in the Meguma Gold District,” he said.
No timeframe has yet been announced for the business combination, but negotiations remain ongoing.
MegumaGold Corp (NSAU) is down 10.0 per cent, with shares trading for C$0.14 at 11:13am EST.
Osprey Gold Development (OS) is up 11.11 per cent, with shares trading for 5 cents at 11:42am EST.