- Troilus Gold (TLG) has agreed to acquire all of the issued and outstanding common shares of UrbanGold that it doesn’t already own
- The company currently owns 6,156,291 UrbanGold shares, or approximately 9.7 per cent
- UrbanGold shareholders will vote on the amalgamation at a special meeting
- Closing of the deal is expected to take place by the end of May 2021
- Troilus Gold is down 4.35 per cent on the day, with shares of the company trading at C$1.10 at 1:50 pm ET
Troilus Gold (TLG) has agreed to acquire all of the issued and outstanding common shares of UrbanGold that it doesn’t already own.
The company currently owns 6,156,291 UrbanGold shares, or approximately 9.7 per cent of the UrbanGold Shares outstanding.
UrbanGold shareholders will vote on the amalgamation at a special meeting with closing expected to take place by the end of May 2021.
Under the terms of the agreement, UrbanGold shareholders will receive 0.3004 of a Troilus common share for each UrbanGold share.
That equates to a total consideration of approximately C$19 million.
“The acquisition of Urban Gold aligns with Troilus’ focus on developing a near-term production asset while executing a growth strategy supported by a broad portfolio of exploration and early-development assets within the Frôtet Evans Belt and Quebec. We look forward to welcoming Urban’s shareholders to Troilus and our continued success together,” said Troilus CEO Justin Reid.
Once the deal is completed, short-term goals include UrbanGold adding its 35.1 thousand-hectare land package adjacent to Troilus’ existing 107.3 thousand-hectare Troilus property.
That will further solidify Trolius’ status as the largest mineral claims holder in the Frôtet-Evans Greenstone Belt region. Drill-ready targets throughout the consolidated land package offer further growth potential to the long-term scale and scope of the Troilus asset.
Troilus Gold is down 4.35 per cent on the day, with shares of the company trading at C$1.10 at 1:50 pm ET.