- Stratabound Minerals (SB) has announced it will acquire California Gold Mining (CGM)
- Subject to regulatory and shareholder approval, the acquisition is expected to be completed by July of this year
- Shareholders of California Gold will receive one Stratabound Minerals share for each California Gold share
- Members of both boards have given full endorsement to the transaction
- Following the completion of the transaction, California Gold will de-list its shares from the Canadian Securities Exchange
- Shares of Stratabound Minerals were down 5.26 per cent to C$0.18
- California Gold’s share price soared 31.82 per cent to $0.14
Stratabound Minerals (SB) has announced it will acquire California Gold Mining (CGM).
Subject to regulatory and shareholder approval, the acquisition is expected to be completed by July of this year.
Under the terms of the acquisition, shareholders of California Gold will receive one Stratabound Minerals share for each California Gold share.
“We are extremely pleased to welcome California Gold shareholders to our register and anxious to get to work advancing the Fremont Gold Project towards production,” R. Kim Tyler, president CEO and director of Stratabound Minerals, said in a statement.
He continued,
“Fremont provides a tremendous opportunity to build well beyond its current gold resources, is complementary to our existing early-stage assets and a powerful catalyst of growth for both our shareholders. Our strong cash position concentrated long-term investor base, and team in place will allow us to immediately unlock value on this mutually beneficial transaction.”
Ahead of the acquisition’s approval, California Gold’s shareholders will vote on the transaction at a special shareholders meeting. At least two-thirds of the votes from California Gold’s shareholders are required to approve the transaction.
The meeting is expected to take place in June ahead of the acquisition’s closing in July.
Following shareholder and regulatory approval, California Gold will de-list its shares from the Canadian Securities Exchange.
Stratabound Minerals is a Canadian exploration and development company focused on gold exploration. The company’s flagship project is the Golden Culbert Project in the Yukon and is also focused on advancing its McIntyre Brook Project in New Brunswick.
Caliornia Gold will bring to Stratabound Minerals, upon completion of the acquisition, its flagship Fremont gold project located in Mariposa County, California lies within California’s prolific Mother Lode Gold Belt.
Shares of Stratabound Minerals were down 5.26 per cent to C$0.18. Meanwhile, California Gold’s share price soared 31.82 per cent to $0.14.