• Junior gold exploration company MegumaGold (NSAU) has completed its acquisition of Vancouver-based Osprey Gold Development
  • Under the terms of the deal, MegumaGold acquired 100 per cent of Osprey in exchange for just over 36.6 million common shares
  • With the transaction now complete, the company intends to carry out drill programs at its Caribou, Killag, and Touquoy West properties
  • Osprey’s shares are expected to de-list from the TSX Venture Exchange on September 15, and the company will cease to become a reporting issuer
  • MegumaGold (NSAU) is currently up 5.71 per cent and is trading at C$0.18 per share

Junior gold exploration company MegumaGold (NSAU) has completed its acquisition of Vancouver-based Osprey Gold Development.

Under the terms of the agreement, which was originally announced in a letter of intent on March 23, 2020, MegumaGold acquired all of Osprey’s issued and outstanding securities in exchange for 36,671,166 common shares. This represents half a share in MegumaGold for every whole share in Osprey.

In addition, MegumaGold has assumed Osprey’s obligations regarding outstanding share purchase warrants, which allows warrantholders to acquire a further 11,158,378 shares.

The deal has resulted in the formation of a significant Nova Scotia-focused gold development and exploration company, which combines Osprey’s past-producing and resource-stage assets with MegumaGold’s expansive portfolio of under-explored properties.

Cooper Quinn, former President of Osprey Gold Development, said the combination of assets gives the resulting company a wide variety of targets in a low-cost, re-emerging mining jurisdiction.

“The combined company holds an excellent suite of assets, from near-resource expansion to completely untested targets four kilometres along strike from operating open pit operations.

“The team looks forward to delivering value and progressing our combined assets for the benefit of all shareholders and stakeholders,” he added.

In connection with the acquisition, MegumaGold has expanded its Board of Directors to four members, which will include both Cooper and Jeffrey Wilson, another former director of Osprey. Steven Stine will resign from the board, effective immediately.

Osprey’s shares are expected to de-list from the TSX Venture Exchange on September 15, and the company will cease to become a reporting issuer under the applicable Canadian securities laws.

MegumaGold (NSAU) is currently up 5.71 per cent and is trading at C$0.18 per share at 3:04pm EDT.

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